PACRA Social Impact and Performance Rating Framework for Asset Managers

Criteria – Cross-Sector Qualitative Rating Considerations Methodology – Asset Manager Rating Financial Institutions Methodology Criteria – Cross-Sector Qualitative Rating Considerations Methodology – Asset Manager Rating Social Impact & Performance Rating Criteria Scale SOCIAL IMPACT AND PERFORMANCE RATING (SIP) An independent opinion on the ability of an entity to create intended social impact and achieve sustainable performance. Scale Long-Term Rating SIP1 Very Strong. Very strong ability to create intended social impact and very high likelihood of sustaining performance. SIP2++ SIP2+ SIP2 Strong. Strong ability to create intended social impact and high likelihood of sustaining performance. SIP3++ SIP3+ SIP3 Adequate. Adequate ability to create intended social impact and adequate likelihood of sustaining performance. SIP4++ SIP4+ SIP4 Inadequate. Inadequate ability to create intended social impact and low likelihood of sustaining performance. SIP5 Weak. Weak ability to create intended social impact and very low likelihood of sustaining performance. Rating Modifiers | Rating Actions Outlook (Stable, Positive, Negative, Developing) Indicates the potential and direction of a rating over the intermediate term in response to trends in economic and/or fundamental business / financial conditions. It is not necessarily a precursor to a rating change. ‘Stable’ outlook means a rating is not likely to change. ‘Positive’ means it may be raised. ‘Negative’ means it may be lowered. Where the trends have conflicting elements, the outlook may be described as ‘Developing’. Rating Watch Alerts to the possibility of a rating change subsequent to, or, in anticipation of some material identifiable event with indeterminable rating implications. But it does not mean that a rating change is inevitable. A watch should be resolved within foreseeable future, but may continue if underlying circumstances are not settled. Rating watch may accompany rating outlook of the respective opinion. Suspension It is not possible to update an opinion due to lack of requisite information. Opinion should be resumed in foreseeable future. However, if this does not happen within six (6) months, the rating should be considered withdrawn. Withdrawn A rating is withdrawn on a) termination of rating mandate, b) the debt instrument is redeemed, c) the rating remains suspended for six months, d) the entity/issuer defaults., or/and e) PACRA finds it impractical to surveil the opinion due to lack of requisite information. Harmonization A change in rating due to revision in applicable methodology or underlying scale. Disclaimer: PACRA has used due care in preparation of this document. Our information has been obtained from sources we consider to be reliable but its accuracy or completeness is not guaranteed. PACRA shall owe no liability whatsoever to any loss or damage caused by or resulting from any error in such information. Contents of PACRA documents may be used, with due care and in the right
context, with credit to PACRA. Our reports and ratings constitute opinions, not recommendations to buy or to sell