Instrument rating covers all non-equity instruments including TFCs (long and short term), convertibles, debentures, redeemable certificates. By indicating the risk profile of the instrument, the assigned rating helps the issuer in deciding the terms of the instrument while guiding the potential investors in investment decisions. PACRA's rating process assumes that the return offered on such instruments (expected profit, markup etc.) is in the nature of a fixed obligation. Thus, in the case of TFCs, even though the issuing document refers to the return as ‘expected profit’, PACRA, in consonance with the shared perception of the issuer and the investor, treats this as a contractual obligation for purpose of credit rating.