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 The Pakistan Credit Rating Agency Limited

   
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PACRA - The Value System

PACRA is defined and understood in terms of its core values. Through the years, these simple, yet powerful values have continually guided PACRA and governed its character in its interactions with its clients and within. PACRA's value system can be defined in one simple word - integrity; the practice of being consistent and reliable as per its set code of conduct, without exception. Just as as thought cannot be brought to life without will or effort, similarly, values cannot become core to an entity-be it an individual,society or an organization - without reinforcements. It is through integrity that the fulfillment of this process is ensured. At PACRA, integrity is ingrained in all dimensions of work ethic and personal character.

The company is a founding member of the Association of Credit Rating Agencies of Asia (ACRAA) and maintains compliance with its code of conduct. In addition, it upholds international best practices and comprehensive codes of conduct are documented and enforced governing the conduct of employees, the rating committee members and its board.

PACRA is in the business of evaluating risk. Its sole product is an opinion on risk. The value of this opinion can be tangibly felt only be appreciating the independence exercised in reaching it, the knowledge that forms its basis, the transparency as to how it has come about - in short, the values that have enriched it. In order for such appreciation to come from the heart, PACRA's value system must be understood. Hence, just as these core values define PACRA, We also strive to define them, trying to ensure that comprehension is complete and assimilation immaculate. Indeed, we are what we stand for.

Honesty

True independence and freedom can only exist in doing what's right...AND HONEST. Honesty for PACRA implies Independence,freedom from control, support and whims of others. It is true and fair and honest opinion formulation, achieved by employing experiences and knowledge as per laid down criteria. Independence underlying honesty is the essential hallmark of all opinions formulated by PACRA.

A rating committee comprising highly qualified and experienced professionals ascertains autonomous opinion formulation subsequent to extensive deliberations. PACRA's organizational architecture is laid on the lines of objectivity and ensures the highest level of Independence being exercised by it.

The end-result of honesty is that it inspires trust and underpins our brand equity in ways parallel to the most effective business strategy. In fact, it is the very premise, based on which, at times, we have observed clients reposing complete faith in our judgment, even if it significantly differs from their own.

PACRA does not take upon itself consideration of the social and economic impact of any of its actions, either for its clients or its own business. No internal or external party, be it shareholders, directors or the clients themselves, has any influence upon the final opinion that PACRA delivers.

Timeliness

Timeliness is of essence. Not is it pivotal merely that the opinion is correct but that it is timely as well.to be of real value. Timeliness for PACRA is an ingrained discipline that governs each sphere of operations ranging from work plans to target achievements to rating assignments to the actual formation of opinion.

PACRA recognizes the immense importance of this value as it is in the business of providing information. Even best quality information loses value if it is furnished outside its proper time dimension. Whereas, timeliness is observed in everyday life at PACRA, it is seen as an indispensible element in opinion formation as a rating opinion, in order to have true value, needs to be both accurate and timely.

PACRA supports timeliness of its opinion by a regular formal surveillance exercise.Furthermore, in the interest of efficient execution and planning, termed EE&P at PACRA, work plans are supervised for actual timely performance by a separate business management function. Timeliness is evident in daily routines such as a daily morning briefing at 9:15 AM sharp and a dedicated day for convening rating committees.

Timeliness imparts to PACRA's environment an aura of unhurried and ordered activity in which all that needs to be accomplished flows out smoothly and accurately.

Transparency

Transparency implies crystal clear visibility; a complete lack of ambiguity and elusiveness that hinders perception and sight. PACRA employs transparency as a means to furnish insight into its thinking and considerations leading to informed ratings opinion formation. Transparency is applied consistently to PACRA's products; its policies, practices and people.

PACRA promptly disseminates all its public ratings through its website. PACRA offers a unique service in providing a a summary rating report along with its opinion. This one-page report outlines in detail the rating rationale and the factors impacting the rating. PACRA reports carry the names and contact information for both the lead analyst and the supervising senior in order to handle any rating-related queries. Rating histories are available for all PACRA's public ratings free of charge. PACRA periodically evaluates the performance of its ratings and publishes this information in the form of comprehensive transition studies. All PACRA criteria, codes of conduct, policies and practices are available along with regular updates on its website. PACRA has a transparent fee structure available on its website, despite there being no regulatory requirement requiring such disclosure.

In essence, with transparency PACRA provides its stakeholders the audience agency - the capacity and right to take apart the information implied by PACRA opinions and draw their own conclusions with no compulsion to match the original opinion.

Teamwork

T.E.A.M - Together Everyone Achieves More. An effective organization is one that grooms and nurtures effective teams - a group of highly focused, individuals driven by a common vision to achieve goals. At PACRA, it is believed that the synergistic efforts of the teams lead to triumph, more often than not. Guided by such belief, PACRA strives to provide an atmosphere which induces a sense of united purpose.

Teams at PACRA operate at various levels of hierarchy - the rating committee, the management, managers and analysts. All having one thing in common - an ingrained commitment to the highest quality of opinion.

From day one of an individual's entry in PACRA, the individual is trained to become part of a team. Teamwork skills like interpersonal communication, articulation, empathy, conflict management and mentoring are highly emphasized and learnt by all PACRA individuals, both formally and informally. The communication flow inside teams is both top-down and bottom-up. Vision and strategy is communicated at the top, however, the micro plans, aligned to such vision, are constructed right at the bottom rung.

Hence, working inside a team at PACRA provides invaluable experience in terms of planning your work in your own way. Invariably, it is seen that such a modus operandi results in maximum job satisfaction and a sense of empowerment amongst individuals. In such an environment, the team functions as a unit and is able to achieve any objective and overcome any roadblock in the way of success.

Knowledge

Knowledge enhances the clarity of our understanding and the accuracy of our opinions. Knowledge is the underlying basis for PACRA's opinions. It is the primary determinant in separating fact from fiction. We at PACRA consider our ability to draw meaningful inferences from a vast array of information to be the cornerstone of our credibility. Henceforth, we continuously strive to stretch the boundaries of ignorance by expanding our knowledge.

Knowledge is most meaningful when combined with the expertise of those who know where and how to apply it. The ratings business is knowledge-intensive. Its product, an opinion, evolves out of the combined knowledge of a group of professionals - the analyst, the rating manager and the rating committee. How good the opinion is depends, to a large extent, upon the strength of knowledge that has gone into its making.

PACRA has accumulated knowledge of the ratings business spanning a horizon of three decades. It boasts of a rich heritage through its association with the London-based International Banking and Credit Analysis (IBCA) - later Fitch IBCA.The association gave PACRA a solid base in international best practices, rating criteria, rigor and conduct of the rating committee, rating industry research, publications and databases. Building upon this edge, PACRA today has a dedicated research and criteria division to support its rating function. The company has an in-house knowledge database, available to all comprising third-party research, international publications, news, reports and developments from the local and international credit industry and much more.

We understand that knowledge is dynamic. Hence, we renew and reassess our conclusions through challenge and healthy debate.