KARACHI: The State Bank of Pakistan (SBP) has renewed the status of credit rating agencies operating in the country.
In a statement issued on Wednesday, the central bank said that it renewed the status of VIS and PACRA as Eligible External Credit Assessment Institutions (ECAIs).
It further said that the status of both credit rating agencies operating in Pakistan namely “VIS Credit Rating Company Limited (VIS)” and “The Pakistan Credit Rating Agency Limited (PACRA)” as eligible / recognized External Credit Assessment Institutions (ECAIs) for the calendar year 2022.
Banks and DFIs using the standardized approach of Basel framework are allowed to use credit ratings assigned by VIS and PACRA for CAR calculation purposes, the SBP said.
The renewal of ECAI status for both agencies is expected to support transparency, risk assessment, and stability within Pakistan’s financial sector. Credit ratings play a crucial role in helping banks, development finance institutions, and investors evaluate the creditworthiness of borrowers and financial instruments.
Analysts believe the continuation of recognition for VIS and PACRA will strengthen confidence in the country’s banking framework and ensure compliance with international regulatory standards under the Basel framework. The SBP’s move also reflects its commitment to maintaining a robust financial oversight mechanism and promoting prudent risk management practices across the banking and financial services industry in Pakistan.
