Regulatory Alerts2025-06-30
Added · Updated
Structured Finance Rating Scale and Definitions
Pakistan Credit Rating Agency (PACRA) establishes a forward-looking structured finance rating scale and definitions to assess the creditworthiness and default likelihood of underlying financial instruments. The framework defines long-term rating tiers from AAA to D, alongside operational modifiers including stable, positive, negative, and developing outlooks, rating watches, suspension, withdrawal, and harmonization triggers. PACRA mandates ongoing surveillance with comprehensive reviews at least every six months, enabling timely upgrades, downgrades, or maintenance of ratings as economic and business conditions evolve.
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