Regulatory Alerts2020-05-01 | 23986Added · Updated
Guideline for the Use of Credit Ratings by Regulated Entities
The Central Bank of Trinidad and Tobago establishes recognition methods for credit rating agencies, including direct, indirect, and automatic recognition, and mandates that regulated entities use only recognized ratings for risk-based capital requirements. Regulated entities are prohibited from cherry-picking ratings and must apply the highest applicable risk weight when multiple ratings map to different categories. Upon derecognition of a CRA, entities must cease using its ratings for regulatory purposes, submit a remedial action plan within ten business days, and adjust capital adequacy within three months.
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