Regulatory Alerts2025-10-31
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Microfinance Institutions Rating Methodology
The Pakistan Credit Rating Agency (PACRA) establishes this methodology to standardize credit ratings for Microfinance Banks and Non-Banking Microfinance Companies. The framework assesses institutional sustainability by integrating qualitative drivers, such as ownership, governance, and management, with quantitative metrics covering business and financial risk. By evaluating industry dynamics, technological infrastructure, regulatory compliance, and peer positioning, PACRA determines standalone credit quality and relative market standing to assign final short-term and long-term ratings.
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