Regulatory Alerts2026-08-11
Added · Updated
Structured Covered Bonds/Sukuk Methodology
VIS Credit Rating Company Limited reviewed its Structured Covered Bond/Sukuk methodology dated January 2025, confirming that the fundamental criteria remain unchanged. The document defines Structured Covered Bonds as instruments replicating dual recourse through securitization techniques in jurisdictions lacking specific covered bond legislation, such as Pakistan. It outlines the credit enhancement framework, requiring cover pool assets to mirror the debt profile of the issued instrument and remain unencumbered, with rating uplifts contingent on adequate cushion or margin for servicing debt. The methodology details the analysis framework for ratings, including issuer credit strength, cover pool quality, and overcollateralization requirements to address asset-liability mismatches and replacement risks.
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