Regulatory Alerts2025-07-31
Added · Updated
Holding Company Rating Methodology
The Pakistan Credit Rating Agency (PACRA) issued this methodology to establish a standardized framework for assigning credit ratings to holding companies in Pakistan. The document defines these entities based on their controlling or non-controlling stakes and outlines a comprehensive assessment model that integrates qualitative factors like ownership, governance, management, and investment strategy with quantitative business and financial risks. By evaluating structural complexity, portfolio diversification, income sustainability, and investment marketability, PACRA determines the credit quality and financial flexibility of holding companies to service their obligations.
Topics
Share