Regulatory Alerts2015-11-04
Approval and mapping of Global Credit Rating Co. international scale rating symbols to prescribed risk weights
The South African Reserve Bank issued Directive 9/2015 to approve Global Credit Rating Co. (Pty) Ltd as an eligible external credit assessment institution and mandate the mapping of its ratings to prescribed risk weights. This directive requires all banks and affected persons to apply the specified long-term and short-term rating mappings to calculate minimum required capital and reserve funds under the standardized approach for credit risk and securitisation exposures. The mapping aligns Global Credit Rating Co. symbols with the risk weights previously established for Standard & Poor's ratings in terms of regulation 23 of the Regulations relating to Banks.
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