Communication CBFA_2008_21 Recognition of External Credit Assessment Institutions (ECAIs)

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Communication CBFA_2008_21 of November 24, 2008 Recognition of External Credit Assessment Institutions (ECAIs)

Scope:
Credit institutions and investment firms.

Summary/Objectives:
Pursuant to Articles V.12 and V.13 of the Regulation on the own funds of credit institutions and investment firms of October 17, 2006, the mapping of credit assessments from the Banque de France is updated. The new mapping is applicable from December 1, 2008.

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 by institutions for the calculation of risk-weighted assets when these organizations have been recognized as eligible by the CBFA.

This communication updates the correspondence table mentioned in Communication CBFA_2008_04 of February 5, 2008, which acknowledged the recognition of the Banque de France as an ECAI. The modification of the correspondence table concerns credit quality step 6. The new correspondence table is applicable from December 1, 2008.

Pursuant to 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 (until November 30, 2008)	Banque de France Rating (from December 1, 2008)
1	3++ to 3+	3++ to 3+
2	3	4+
4	4 to 5+	4 to 5+
5	5 to 6	5 to 6
6	8 to 9	7 to 9

CBFA_2008_21 of November 24, 2008 2 / 2
CBFA 12-14 Rue du Congrès | 1000 Brussels
+32 2 220 53 42 | +32 2 220 54 93 | www.cbfa.be

This correspondence table is applicable solely to listed companies based on accounting and financial documentation. Companies with a credit rating of 'X0' are weighted at 100%.

Please accept, Madam, Sir, the expression of my best regards.

The President,
Jean-Paul SERVAIS.