Regulatory Alerts2025-06-30
Added · Updated
PACRA Structured Finance Rating Methodology
The Pakistan Credit Rating Agency (PACRA) establishes this methodology to standardize the evaluation and assignment of credit ratings for structured finance instruments, specifically securitization transactions. The framework mandates a data-driven assessment of the originator’s profile, legal structure, underlying asset quality, and repayment adequacy to ensure bankruptcy remoteness and accurate cash flow projections. Incorporating recent SECP regulatory enhancements, PACRA assigns preliminary and final ratings using an "sf"-suffixed scale and requires continuous six-monthly surveillance to monitor portfolio performance and data availability.
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