Regulatory Alerts2026-05-20
Added · Updated
Preference Shares Rating Scale
PACRA establishes a standardized rating scale and operational framework for preference shares, evaluating the issuer's capacity to meet dividend and principal redemption obligations. The document defines long-term ratings from AAA (highest credit quality) to D (default), alongside modifiers such as stable, positive, or negative outlooks and rating watches. It mandates ongoing surveillance with comprehensive reviews at least every six months, while outlining clear procedures for suspension, withdrawal, and harmonization of ratings.
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