Regulatory Alerts2025-07-25
Added · Updated
PACRA Scale & Definitions for Non-Banking Finance Companies Rating
PACRA establishes a standardized credit rating scale and operational framework to assess the forward-looking creditworthiness and default likelihood of entities and debt instruments. The methodology defines long-term ratings from AAA to D and short-term ratings from A1+ to A4, while specifying rating modifiers such as outlook, watch, suspension, withdrawal, and harmonization. These criteria apply across multiple sectors including non-banking finance companies and financial institutions, mandating biannual surveillance and clear triggers for rating upgrades or downgrades.
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