Pakistan Credit Rating Agency Limited Releases Its Rating Transition Study
Lahore: The Pakistan Credit Rating Agency (PACRA) releases its Rating Transition Study. The study titled “PACRA Rating Transition Study – A decade in Transition” is available on PACRA’s website.
This Rating Transition Study is the fourth compilation of PACRA’s Rating Transition Study. The study captures the history and performance of PACRA ratings assigned from FY02 – FY11 – a ten-year period.
With fundamental shifts taking place onto the risk landscape, both migration and default have exhibited trends during the recent period from FY08 – FY11 that were not seen before in prior years covered by the study. However, in the present study, the credit outlook is seen stabilizing relative to the onslaught of the last two years, even as the operating environment still remains tough.
PACRA Rating Transition Study is to be considered in the context of some limitations. Firstly, a relatively smaller ratings universe does not qualify as a representative sample, thus, failing to present a true reflection of the credit quality in the economy. Secondly, due to high concentration in PACRA’s rating universe in the investment-grade categories, defaults emanating from these categories do not indicate lack of ordinality for PACRA’s ratings.
Moreover, the default study, registering either nil defaults or a very small number of defaults may not be representative.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425