Pakistan Credit Rating Agency Limited reviews and updates its policy of recognizing Default
Lahore: PACRA has reviewed and updated its Policy of recognizing default titled “What is Default?”. This is an exercise periodically undertaken at PACRA to ensure that its policies and practices remain current and robust.
The policy updation has resulted in the following key revisions: i PACRA have supplemented its concept of lenders’ forbearance where PACRA may recognize default even before the exhaustion of prudential/regulatory forbearance available to lenders, if it considers that such forbearance period would be unable to cure default.
ii PACRA has further elaborated and clarified the concept of “default avoidance restructuring”. If, a restructuring is established to be an act of default avoidance, compromising originally agreed benefits to lenders, PACRA would be revising the ratings to default category.
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