BRPD Circular No. 12, Mapping of External Credit Assessment Institutions' (ECAIs)

Website: www.bb.org.bd Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka August 02, 2012 BRPD Circular No- 12 Date:---------------------- Shraban 18, 1419 Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Mapping of External Credit Assessment Institutions’ (ECAIs) Rating scales with Bangladesh Bank (BB) Rating Grade Please refer to BRPD Circular No. 35 dated December 29, 2010 regarding the issuance of Guidelines on Risk Based Capital Adequacy (RBCA) for banks. According to the guidelines, Risk Weighted Asset (RWA) against Credit Risk is to be computed on the basis of credit rating conducted by External Credit Assessment Institutions (ECAIs) duly recognized by Bangladesh Bank (BB). Consequently, calculated RWA and Capital Adequacy Ratio (CAR) will be reported as per specific reporting formats enclosed in the RBCA guidelines. 2) From this point of view, Alpha Credit Rating Limited (ACRL) has been recognized as an eligible ECAI in addition to existing 05 (Five) rating agencies (i.e. CRISL, CRAB, NCRL, ECRL and ACRSL). All the scheduled banks operating in Bangladesh may nominate any one or more rating agency (ies) for their own and counterparty credit rating for the purpose of calculating RWA against credit risk as per RBCA Guidelines. 3) Rating scales of CRISL, CRAB, NCRL, ECRL and ACRSL with BB rating grades has already been mapped earlier. Now, the rating scales of ACRL have been mapped with BB rating grades as given below: Please acknowledge receipt. Yours Sincerely, Sd/- (K. M. Abdul Wadood ) General Manager Phone: 7117825

Long Term Short Term BB’s Rating Grade Equivalent Notch/Notation of ACRL BB’s Rating Grade Equivalent Notch/Notation of ACRL 1 AAA S1 AR-1 AA+, AA, AA￾2 A+, A, A- S2 AR 2 3 BBB+, BBB, BBB- S3 AR 3 4 BB+, BB, BB- S4 AR 4 5 B+, B, B-,CCC, S5 AR-5 6* CC+,CC,CC-, C+, C, C-, D S6 AR-6

• Includes Default Rating (DR)