CBFA/ Recognition of External Credit Assessment Institutions (ECAIs)

rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be Prudential Policy Brussels, 10 September 2007 Communication concerning the recognition of External Credit Assessment Institutions (ECAIs)

Madam, Sir,

Pursuant to Article V.12 of the Regulation on the own funds of credit institutions and investment firms of 17 October 2006, external credit assessments published by ECAIs may only be used by institutions in the calculation of risk-weighted exposures when these organizations have been recognized as eligible by the CBFA.

This communication supplements the list of ECAIs recognized as eligible by the CBFA as well as the mapping tables mentioned in Circular PPB-2007-2-CPB of 8 February 2007.

Thus, the Japan Credit Rating Agency (or JCR) is recognized as an eligible ECAI for the segment of commercial entities (including enterprises, institutions, and financial institutions FPT 1 FPT) under the standard approach for long-term exposures.

The CBFA, pursuant to Article V.14, §2, authorizes the use of unsolicited ratings from this organization.

Pursuant to Article V.13, JCR assessments are associated with the following credit quality steps: ... / …

P 1 P As defined in the Regulation of the Banking, Financial and Insurance Commission of 17 October 2006 concerning the own funds of credit institutions and investment firms.

rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be Standard Approach: Long-term Mapping Credit Quality Step JCR Rating 1 AAA to AA- 2 A+ to A- 3 BBB+ to BBB- 4 BB+ to BB 5 BB to B- 6 Less than or equal to CCC

Please accept, Madam, Sir, the expression of our distinguished sentiments.

The President, Jean-Paul Servais.