Regulatory Alerts2025-07-31
Added · Updated
PACRA Corporate Rating Scale and Definitions
PACRA establishes this framework to standardize credit rating scales and definitions for corporate entities, financial institutions, and debt instruments. The document defines long-term (AAA to D) and short-term (A1+ to A4) rating tiers that measure forward-looking creditworthiness and default likelihood, while introducing modifiers such as outlook, watch, suspension, withdrawal, and harmonization. It mandates ongoing surveillance with comprehensive reviews at least every six months and outlines specific triggers for rating actions and opinion updates.
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