Beruflich Dokumente
Kultur Dokumente
ROLL NO.05
PACRA
PACRA stands for Pakistan Credit Rating Agency. It was first credit rating Company established in Pakistan. It was established in 1994 between the joint venture of IBCA Limited (the international credit rating agency), International Finance Corporation (IFC) and the Lahore Stock Exchange. The primary function of PACRA is to evaluate companies willingness to fulfill its debt obligations. PACRA is geared to provide a full range of credit rating services. This includes the rating of corporate entities and fixed income instruments. The ownership and management structure of PACRA ensures complete independence from any direct or indirect control of the Government, any private sector business group or financial institution. A rating assigned by the rating committee, which includes senior management of PACRA, reflects PACRA's objectively formed opinion of credit risk. Other rating reviews carried out by PACRA include Financial Strength ratings of modarabas, Mutual Fund ratings and Insurer Financial Strength (IFS) ratings for insurance companies
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SALEEM SATTAR
ROLL NO.05
JCR-VIS
JCR-VIS is Pakistans only data bank and financial research organization, operating as a Full-service rating agency and known for providing high quality independent rating services in Pakistan. Initially the company was incorporated as a joint venture between Vital Information Services (VIS) , Karachi Stock Exchange, Islamabad Stock Exchange and Duff & Phelps Credit Rating Co. (DCR) back in 1997.Subsequent to DCRs merger with Fitch IBCA, DCR sold its interests in DCR-VIS to VIS. In 2001 JCR and VIS entered into a Joint Venture Agreement whereby JCR acquired 15% share in DCR-VIS Credit Rating Co. Ltd. of Pakistan. As a result of this agreement, the name of the company changed from DCR-VIS Credit Rating Co. Ltd. to JCR-VIS Credit Rating Co. Ltd. (JCR-VIS).
Major Stakeholders
JCR-VIS was established in 2001 as a joint venture between Japan Credit Rating Agency, Ltd. (JCR), Vital Information Services (Pvt.) Limited (VIS), Karachi Stock Exchange (KSE) and Islamabad Stock Exchange (ISE).
JCR-VIS Services
1) Entity rating is JCR-VISs opinion of the general creditworthiness of a companys senior unsecured debt. Clientele is classified into different groups as: a) b) c) d) Commercial Banks Financial Institutions Micro Finance Banks Investment Banks e) f) g) h) Mutual Funds Leasing Companies Modarabas Security Firms
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SALEEM SATTAR
ROLL NO.05
2) Instrument Ratings: Rating of financial instruments like TFC/CP denotes its creditworthiness with respect to a particular debt security based on relevant risk factors. a) Long Term Corporate Debt Instruments b) Short Term Corporate Debt Instrument 3) Real Estate Grading: One of the new developments in the local rating business is the rating of real estate agencies and developers. 4) Corporate Governance: in March 2002, the Securities and Exchange Commission of Pakistan (the SEC) issued the Code of Corporate Governance (the Code) to establish a framework for good governance of companies listed on Pakistan's stock exchanges. JCR-VIS also provides ratings based on corporate governance compliance to SECP and SBP. 5) Indicative Ratings: JCR-VIS also conducts indicative ratings for entities that wish to get an initial idea regarding their ratings prior to going for a full formal rating review. The indicative ratings as the name suggests merely indicate the rating band or category in which the entitys ratings are likely to fall, if a formal rating review were to be conducted. As such, indicative ratings are not meant for public dissemination and are meant only for the consumption of the management of the entity.
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SALEEM SATTAR
ROLL NO.05
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SALEEM SATTAR
PACRA
ROLL NO.05
1. PACRA's ratings are an assessment of the credit standing of entities in Pakistan. 2. They do not take into account the potential transfer or convertibility risk that may exist for foreign currency creditors. 3. A plus (+) or minus (-) may be appended to a rating to denote relative status within major rating categories. Such endings are not added to the AAA long-term rating category, to categories below CCC, or to short- term ratings. 4. PACRA's rating is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the securitys market price or suitability for a particular investor.
JCR-VIC
1. JCR-VIS places entities and issues on Rating Watch when it deems that there are conditions present that necessitate reevaluation of the assigned rating(s). 2. A Rating Watch announcement means that the status of assigned rating(s) is uncertain. Development in factors other than those that necessitated the Rating Watch may result in a rating change, while the rating(s) continues to be under Rating Watch 3. The three outlooks Positive, Stable, and Negative qualify the potential direction of the assigned rating(s). An outlook is not necessarily a precursor of a rating change. 4. In the event that JCR-VIS deems that, as a result of lack of corporation with regard to the provision of information or for any other reason it is not possible to access the current status of the assigned rating(s), the ratings will be suspended. 5. Ratings are withdrawn in the following situations a) Non-renewal/cancellation of the rating agreement b) Maturity of a rated issue c) Cessation of an entity for any reason.
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