Region

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Regulator

2025-10-31

Added 2026-06-03 · Updated 2026-09-05

Rental REIT Fund Rating Framework

PACRA issues this assessment framework to rate Rental REIT funds on their capacity to maintain stable rental income and mitigate asset value risks. The document establishes a long-term rating scale from AAA to B, supplemented by outlook indicators and specific actions including watch, suspension, withdrawal, and harmonization. Ongoing surveillance requires comprehensive six-month reviews and interim assessments for material events, permitting rating maintenance, upgrades, or downgrades.

Pakistan

The Pakistan Credit Rating Agency

Rental REIT Fund Rating

Rental REIT Fund Rating
Opinion on the relative capacity of a Rental REIT fund to maintain stable rental income and risk factors impacting value of REIT assets.

Scale	Long-Term Rating
AAA (rr)	Exceptionally strong capacity to maintain stable rental income. Risk factors impacting value of REIT assets are considered negligible over the foreseeable future.
AA+ (rr)<br>AA (rr)<br>AA- (rr)	Very strong capacity to maintain stable rental income. Risk factors impacting value of REIT assets are modest over the foreseeable future.
A+ (rr)<br>A (rr)<br>A- (rr)	Strong capacity to maintain stable rental income. Risk factors impacting value of REIT assets are modest over the foreseeable future.
BBB+ (rr)<br>BBB (rr)<br>BBB- (rr)	Adequate capacity to maintain stable rental income. Risk factors impacting value of REIT assets are modest over the foreseeable future.
BB+ (rr)<br>BB (rr)<br>BB- (rr)	Inadequate capacity to maintain stable rental income. Risk factors impacting value of REIT assets are high.
B (rr)	Weak capacity to maintain stable rental income. Risk factors impacting value of REIT assets are very high.

Rating Modifiers	Rating Actions
Outlook (Stable, Positive, Negative, Developing)<br>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<br>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.

Rating Modifiers

Rating Actions

Outlook (Stable, Positive, Negative, Developing)<br>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<br>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.

Surveillance. Surveillance on a publicly disseminated rating opinion is carried out on an ongoing basis till it is formally suspended or withdrawn. A comprehensive surveillance of rating opinion is carried out at least once every six months. However, a rating opinion may be reviewed in the intervening period if it is necessitated by any material happening. Rating actions may include "maintain", "upgrade", or "downgrade".

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.