Regulatory Alerts2025-07-25
Added · Updated
PACRA Non-Banking Finance Companies Rating Methodology
The Pakistan Credit Rating Agency (PACRA) issued this methodology to standardize credit rating assignments for Non-Banking Finance Companies, encompassing leasing, housing finance, investment finance, digital lenders, and Modarabas. The framework evaluates six core areas—profile, ownership, governance, management, business risk, and financial risk—by integrating qualitative assessments of organizational structure with quantitative metrics like market share, revenue diversification, and cost efficiency. It mandates a comprehensive analysis of regulatory compliance, digital operational risks, and financial health to determine both standalone credit quality and relative market positioning for accurate rating outcomes.
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