Regulatory Alerts2025-07-30
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PACRA Stability Rating Assessment Framework for Mutual Funds
The Pakistan Credit Rating Agency (PACRA) issues this framework to assign Stability Ratings to mutual fund portfolios, systematically evaluating their exposure to credit, market, and liquidity risks. The methodology applies a combined quantitative and qualitative assessment of portfolio composition, weighted average credit quality, interest rate sensitivity, redemption patterns, and management capability to assign ratings ranging from AAA(f) to B(f). Funds must have finalized mandates and Securities and Exchange Commission of Pakistan approval to qualify, providing investors with a standardized yardstick to compare risk-return profiles and navigate net asset value volatility.
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