Regulatory Alerts2026-05-20
Added · Updated
PACRA Preference Shares Rating Methodology
The Pakistan Credit Rating Agency (PACRA) mandates a structured rating framework for preference shares, evaluating their hybrid debt-equity characteristics against the issuer’s baseline credit score. The methodology dictates specific notching adjustments based on dividend accumulation, convertibility rights, and redemption terms to accurately reflect investor protection. PACRA enforces semi-annual surveillance of these instruments, modifying ratings when dividend payments lapse or contractual redemption obligations are breached.
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