DEFINITION of 'Credit'

A contractual agreement in which a borrower receives something of value

now and agrees to repay it to lender at specified date in the future, generally
with interest. The term also refers to the borrowing capacity of an individual
or company.

DEFINITION of 'Creditworthiness'
An assessment of the likelihood that a borrower will default on his or her
debt obligations. It is based upon factors, such as his/her history
of repayment and credit score. Lending institutions also consider the
availability of assets and extent of liabilities to determine the probability of
default.

DEFINITION of 'Credit Rating'

An assessment of the creditworthiness of a borrower in general terms or with
respect to a particular debt or financial obligation. A credit rating can be
assigned to any entity that seeks to borrow money an individual,
corporation, state or provincial authority, or sovereign government. Credit
assessment and evaluation for companies and governments is generally
done by a credit rating agency such as Standard & Poors, Moodys or Fitch.
These rating agencies are paid by the entity that is seeking a credit rating for
itself or for one of its debt issues.

JCR-VIS Rating Process

Issuer/Client
JCR-VIS
Issuer/Client

1.
2.
3.
4.
5.

Signs agreement for an initial rating

Submits preliminary information materials
Conducts a preliminary study
Submits a detailed questionnaire to the issuer/client
Provides detailed information in response to detailed questionnaire

JCR-VIS

6. Conducts pre due diligence meeting analysis

7. Conducts due diligence meetings

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JCR-VIS

8. Conducts post due diligence analysis

9. Brief for internal rating committee meetings is prepared
10. Sub Committee recommends preliminary/initial rating
11. Rating Committee decides the preliminary/initial rating

Issuer/Client
JCR-VIS

12. Discusses the rating rationales and rating issues with client
13. Notifies issuer of the preliminary/initial rating, deliberates on appeals by cli
any
14. Consents to release of preliminary/initial rating to the public in case of non
mandatory ratings
15. Releases the preliminary/initial rating to the press

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Company Profile
Shareholders
Japan Credit Rating Agency, Ltd. - 15.0%
Vital Information Services (Pvt.) Ltd. - 67.5%
Karachi Stock Exchange Limited - 12.5%
Islamabad Stock Exchange Limited - 5.0%
Joint Ventures & Affiliations
Islamic International Rating Agency - (IIRA)
Credit Rating Information & Services Limited - (CRISL)
Association of Credit Rating Agencies in Asia - (ACRAA)

Company Profile
JCR-VIS Credit Rating Co. Ltd. (JCR-VIS), approved by Securities &
Exchange Commission of Pakistan and State Bank of Pakistan, is operating
as a Full Service rating agency providing independent rating services in
Pakistan. JCR-VIS is a joint venture between Japan Credit Rating Agency,
Ltd. (JCR) - Japan's premier rating agency, Vital Information Services
(Pvt.) Limited (VIS) Pakistans only independent financial research
organization, Karachi Stock Exchange and Islamabad Stock Exchange.
JCR-VIS is not an NRSRO and its ratings are not NRSRO credit ratings. As
per the technical agreement with JCR, JCR-VIS may seek JCRs assistance
on any conceptual and methodology related matter. However, JCR is not
represented on the rating committee and JCR-VIS does not seek JCRs
opinion on individual ratings.
In January 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). The DCR-VIS Credit Rating Co. Ltd. was incorporated in 1997 as
a joint venture between VIS, Karachi Stock Exchange, Islamabad Stock
Exchange and Duff & Phelps Credit Rating Co. (DCR). Subsequent to DCRs
merger with Fitch IBCA, DCR sold its interests in DCR-VIS to VIS.
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Major Promoters
Japan Credit Rating Agency, Ltd. - (JCR)
JCR was established in April 1985 by a group of major Japanese
institutional investors and was authorized by Japans Ministry of Finance
(MOF) as a recognized rating agency in 1987. JCRs rating services cover
broad range of financial products including long-term bonds, senior debts,
medium-term notes, and commercial paper for resident and non-resident
entities, and multilateral development banks. In addition, JCR rates ability
to pay insurance claims for the Japanese life and casualty insurance
companies as well as structured financing for both residents and nonresidents including asset-backed securities.
JCR enjoys a strong support from Japans prominent institutional investors.
The 109 shareholders include Japans major life and casualty insurance