Communication CBFA_2008_11: Recognition of External Credit Assessment Organizations (ECAOs)

rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Communication CBFA_2008_11 du 9 mai 2008 Recognition of External Credit Assessment Organizations (ECAOs) Scope:
Credit institutions, investment firms, resolution bodies and entities assimilated to resolution 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 17 October 2006, the long-term mapping of the Japan Credit Rating Agency is reviewed and 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 17 October 2006, external credit assessments published by ECAOs may not be used by institutions in the calculation of risk-weighted amounts unless these organizations have been recognized as eligible by the CBFA.

This communication aims to update the information regarding the list of ECAOs recognized as eligible by the CBFA, as well as the mapping tables mentioned in circular PPB-2007-2-CPB of 8 February 2007.

Thus, pursuant to Article V.13, assessments by the Japan Credit Rating Agency (or JCR) are associated with the following credit quality steps:

Standard Approach:
Long-term Mapping
Credit Quality Step JCR Rating
1 AAA to AA2 A+ to A3 BBB+ to BBB4 BB+ to BB5 B+ to B6 Lower than or equal to CCC

CBFA_2008_11 of 9 May 2008 2 / 2
CBFA rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Short-term Mapping Credit Quality Step 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.