The Pakistan Credit Rating Agency Limited

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An insight into risk takes into account several dimensions. Rating factors determine the sources of risk. On the other, rating methodologies and criteria describe how these rating factors are going to be looked at by PACRA to evolve and reach a final opinion on risk. Finally, the rating scale is used for PACRA's placement of its opinion on a standardized, ordinal scale facilitating comparability across opinions ....Read More

Rating Elements

Rating elements or rating factors elaborate where the risk is emanating from. Each rating element is examined by PACRA first on a stand-alone basis and then in relation to all other rating factors. PACRA takes into account both qualitative and quantitative rating elements....Read More

Rating Methodologies

Rating methodologies / criteria promote improvement, standardization and consistency in PACRA's credit analysis. PACRA bases its ratings analysis and opinions upon established criteria, methodologies and rating definitions and applies them in a uniform and consistent manner. These rating methodologies / criteria serve to: (i) identify the most significant rating factors, (ii) explain how the criteria address and evaluate the rating factors, and (iii) describe both the underlying assumptions and limitations of the rating analysis....Read More

Rating Scales and Definitions

PACRA employs separate rating scales with proprietary notations and definitions for its credit rating products. These rating scales indicate the probability of default in an ordinal manner. Hence, a higher (lower) rating on any of PACRA's rating scales corresponds to a lower (higher) probability of default. The gradigs and rankings have their own rating scales and rating grids that indicate relative quality and rank (from best-to-worst) respectively....Read More


Frequently asked questions are answered HERE....Read More