Regulatory Alerts2008-02-05 | CBFA_2008_04Added · Updated
Communication CBFA_2008_04: Recognition of External Credit Assessment Institutions (ECAIs)
The CBFA recognizes the Banque de France as an eligible External Credit Assessment Institution (ECAI) for commercial entities under the standard approach for long-term exposures, authorizing the use of its unsolicited ratings. A specific mapping table is established to associate Banque de France ratings with Credit Quality Steps (CQS) 1 through 6, applicable to listed companies with accounting and financial documentation. Entities with a credit rating of 'X0' are assigned a risk weight of 100%.
rue du Congrès 12-14 | 1000 Brussels +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be Communication CBFA_2008_04 of 5 February 2008 Recognition of External Credit Assessment Institutions (ECAIs) Scope: Credit institutions and investment firms Summary/Objectives In accordance with Article V.12 of the Regulation on the own funds of credit institutions and investment firms of 17 October 2006, the Banque de France is recognized as an ECAI. Madam, Sir, In accordance with 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 Banque de France (or BdF) is recognized as an eligible ECAI for the segment of commercial entities (including companies, establishments, and financial institutions1) within the framework of the standard approach for long-term exposures. The CBFA, in accordance with Article V.14, §2, authorizes the use of unsolicited ratings from this organization.
1 In the sense of the Regulation of the Banking, Financial and Insurance Commission of 17 October 2006 concerning the own funds of credit institutions and investment firms.
CBFA_2008_04 2 / 2 5 February 2008
CBFA rue du Congrès 12-14 | 1000 Brussels +32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be In accordance with Article V.13, the assessments of the Banque de France are associated with the following credit quality steps: Standard Approach: Long-term Mapping Credit Quality Step Banque de France Rating 1 3++ to 3+ 2 3 3 4+ 4 4 to 5+ 5 5 to 6 6 8 to 9 This mapping table is applicable solely to listed companies based on accounting and financial documentation. Companies with a credit rating of 'X0' are risk-weighted at 100%. Please accept, Madam, Sir, the expression of our distinguished sentiments. R. Bonte, H. Becquaert, Member of the Management Committee. Member of the Management Committee.