Codes of Conduct



Sr#Title DateView
1Code of Conduct | BoD Jun-2010
2Code of Conduct | Employee Feb-2015
3Code of Conduct | Employee | Certification Jul-2015

Compliance Report

PACRA has adopted a thorough strategy to comply with the Code. As PACRA sees it, the Code requirements encompass the following key dimensions: (i) executional practices / procedures at CRA, (ii) policies / criteria / methodologies governing formation of rating opinions, and (iii) disclosures.

As per (i), PACRA is fully compliant and all internal processes have been aligned to what the Code requires barring few exceptions that are requested from SECP. As per (ii), all requisite policies / criteria / methodologies are published. For (iii), we have ensured compliance through extended disclosure at our website. In case of disclosure related to rating opinions, PACRA has identified a cut-off date of June 30, 2014. Hence, it will be furnishing requisite information as and when any new opinion is assigned / updated beginning July 01, 2014.

A clause-by-clause Compliance Status Report has been prepared by PACRA.



Sr#Title DateView
1Annual Compliance Report | SECP Code of Conduct For CRAs Sep-2014
2Annual Compliance Report | SECP Rules For CRAs Sep-2014

Rating Definitions and Symbols



Sr#Title DateView
1 Scale & Definitions | Asset Manager Rating Jun-2016
2Scale & Definitions | Capital Protection Rating Mar-2017
3Scale & Definitions | Corporates Jul-2017
4Scale & Definitions | Entity Rating Jun-2016
5Scale & Definitions | Fund Performance Ranking Jun-2016
6Scale & Definitions | Fund Stability Rating Jun-2017
7Scale & Definitions | Independent Power Producers (IPP) Jun-2016
8Scale & Definitions | Instrument Rating Jun-2014
9Scale & Definitions | Insurer Financial Strength (IFS) | General Sep-2016
10Scale & Definitions | Insurer Financial Strength (IFS) | Life Jun-2016
11Scale & Definitions | Long Term and Short Term Rating Scale Jun-2017
12Scale & Definitions | MicroFinance Institutions Jun-2017
13Scale & Definitions | Mutual Fund Ranking Jun-2017
14Scale & Definitions | Non-Banking Finance Companies Jan-2017
15Scale & Definitions | Preference Shares Rating Jun-2017
16Scale & Definitions | Project Grading Jun-2016
17Scale & Definitions | Rating Modifiers Jun-2017
18Scale & Definitions | Real Estate Project Grading Jun-2017
19Scale & Definitions | Security Agency Grading Jun-2016
20Scale & Definitions | Structured Finance Rating Jun-2016
21Scale & Definitions | Sukuk Rating Jun-2017

Criteria/Methodologies



Sr#Title DateView
1Methodology | Asset Manager Rating May-2017
2Methodology | Bank Rating Jun-2017
3Methodology | Broker Management Rating Sep-2017
4Methodology | Capital Protection Rating Mar-2017
5Methodology | Corporates Jul-2017
6Methodology | Debt Instrument Jun-2017
7Methodology | Fund Stability Rating Jun-2017
8Methodology | Holding Companies Jun-2017
9Methodology | Independent Power Producers (IPP) May-2017
10Methodology | Insurer Financial Strength (IFS) Rating | General Jun-2017
11Methodology | Insurer Financial Strength (IFS) Rating | Life Jun-2017
12Methodology | MicroFinance Institutions Jun-2017
13Methodology | Mutual Fund Ranking Jun-2017
14Methodology | Non-Banking Finance Companies Jan-2017
15Methodology | Preference Shares Rating Jun-2017
16Methodology | Real Estate Project Grading Jun-2017
17Methodology | Securities Broker Mar-2017
18Methodology | Security Agency Grading Jun-2017
19Methodology | Structured Finance Instruments Rating Jun-2017
20Methodology | Sukuk Rating Jun-2017
21Rating Modifiers Jun-2017
22Relationship | Long Term and Short Term Rating Scale Jun-2017

Policies/Procedures



Sr#Title DateView
1Policy | Announcement of Rating Sep-2017
2Policy | Anti-Fraud, Bribery and Corruption Sep-2014
3Policy | Criteria Group Jun-2016
4Policy | Investment and Trading in Securities Sep-2017
5Policy | Rating Fee Sep-2017
6Policy | Review of Credit Ratings Sep-2017
7Policy | Rotation of Analyst Sep-2017
8Policy | Solicited, Un-Solicited and Private Credit Rating Sep-2017
9Policy | Treatment of Confidential Information Sep-2017
10Policy | Whistleblower Sep-2017
11Policy | Withdrawal and Suspension of Ratings Sep-2017

Rating Transitions/Movements



Sr#Title DateView
1Methodology | Ratings Transition Feb-2015
2Private Ratings | Movement Jun-2016
3Rating Transition Study | FY05-FY14 Feb-2015
4Rating Transition Study | FY06-FY15 Apr-2016
5Switch Report | Rating Movement between two CRAs Jun-2016
6Transition to Default Studies Jun-2014
7What Is DEFAULT? Feb-2015

Industry Specific Studies

Industry analysis is a key component of credit rating process, as entities do not operate in a vacuum. Economic environment, regulatory policies, demand and supply dynamics, competition, energy situation, security threats, and other factors all play a significant role that can impact an entity’s performance. Hence, it is paramount to be fully cognizant of how the industry is behaving and what can be expected in the future.

PACRA assesses the level of credit risk prevalent in various industries. This is an ongoing exercise to determine short-term and long-term prospects of the industry. We establish correlation between the industry and entities emanating out of it. Although industry level analysis is conducted on all the sectors in PACRA’s rating universe, we traditionally publish our industry reports (in public domain) for sectors that have five or more clients. This covers close to two-thirds of our outstanding ratings.

The new code of conduct requires rating agencies to publish industry reports for all the sectors. In compliance with the new code, PACRA will publish its opinion on all industries within its rating universe starting July 01, 2014. These could be in form of studies, reviews, update or snapshots.



Industry Specific Studies

Fee Structure



Fee Structure

Shareholding



Ownership

Best Practices Guiding Documents



Sr#Title DateView
1ACRAA Code of Conduct Fundamentals for Domestic Credit Rating Agencies Apr-2011
2IOSCO Code of Conduct Fundamentals for Credit Rating Agencies May-2008
3PACRA Compliance Status on ACRAA Jan-2013
4SECP Code of Conduct for Credit Rating Companies/Agencies Jan-2014
5SECP Code of Corporate Governance Mar-2012

Governance



Board of Directors

Annual Financial Statements



Sr#Title DateView
1Annual Financial Statements Jun-2016