Communication CBFA_2008_11 on Recognition of External Credit Assessment Institutions (ECAIs)

rue du Congrès 12-14 | 1000 Brussels t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Communication CBFA_2008_11 of May 9, 2008 Recognition of External Credit Assessment Institutions (ECAIs) Scope:
Credit institutions, investment firms, liquidation bodies and bodies assimilated to liquidation bodies and financial companies. Summary/Objectives:
Pursuant to Article V.12 of the regulation on the own funds of credit institutions and investment firms of October 17, 2006, the long-term mapping of the Japan Credit Rating Agency is reviewed and the recognition is extended to short-term assessments. Madam, Sir, Pursuant to Article V.12 of the regulation on the own funds of credit institutions and investment firms of October 17, 2006, external credit assessments published by ECAIs may only be used in the calculation of risk-weighted exposures by institutions when these bodies have been recognized as eligible by the CBFA. This communication aims to update the information regarding the list of ECAIs recognized as eligible by the CBFA as well as the mapping tables mentioned in circular PPB-2007-2-CPB of February 8, 2007. Thus, pursuant to Article V.13, the assessments of the Japan Credit Rating Agency (or JCR) are associated with the following credit quality scales:
Standard Approach:
Long-term Mapping
Credit Quality Scale JCR Rating
1 AAA to AA-
2 A+ to A-
3 BBB+ to BBB-
4 BB+ to BB-
5 B+ to B-
6 Less than or equal to CCC

CBFA_2008_11 of May 9, 2008 2 / 2
CBFA rue du Congrès 12-14 | 1000 Brussels t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Short-term Mapping Credit Quality Scale JCR Rating 1 J-1 2 J-2 3 J-3 4 All short-term ratings lower than J-3 (NJ) 5 All short-term ratings lower than J-3 (NJ) 6 All short-term ratings lower than J-3 (NJ) Please accept, Madam, Sir, the expression of our distinguished sentiments. The President, Jean-Paul Servais.