State Bank of Pakistan (SBP) has renewed the status of External Credit Assessment Institutions (ECAIs) of both the country’s two prominent Credit Rating Agencies for the calendar year 2012. M/s JCR-VIS Credit Rating Company Limited and M/s Pakistan Credit Rating Agency (PACRA) are the two credit rating firms that have been assigned a renewed status. It may be pointed out that standardised approach of credit risk under Basel-II requires banks and development finance institutions to use credit ratings assigned by the recognised ECAIs for the purpose of calculating the required capital.
