Mapping of External Credit Assessment Institutions’ Rating Scales with Bangladesh Bank Rating Grade

Website: www.bb.org.bd Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka September 02, 2021 BRPD Circular No-20 Date:---------------------- Bhadra 18, 1428 Managing Directors/ Chief Executives All Scheduled Banks in Bangladesh Dear Sir, Mapping of External Credit Assessment Institutions’ (ECAIs) Rating scales with Bangladesh Bank (BB) Rating Grade Please refer to BRPD Circular No. 12 dated October 31, 2013 regarding the mapping of External Credit Assessment Institutions’ (ECAIs) Rating scales with Bangladesh Bank (BB) Rating Grade. The Bangladesh Rating Agency Limited (BDRAL) was recognized as an eligible ECAI for SME clients’ credit rating and the rating scales of BDRAL were mapped with BB’s SME rating grades. 2. At this stage, in addition of rating of SME clients, BDRAL has been recognized as a full￾fledged ECAI in addition to existing 07 (Seven) rating agencies (i.e., CRISL, CRAB, NCRL, ECRL, ACRSL, WASO and ACRL). All the scheduled banks operating in Bangladesh may nominate any one or more of the rating agency (ies) for their own and counterparty credit rating for the purpose of calculating RWA against credit risk as per RBCA Guidelines. 3. In this regard, rating scales of BDRAL have been mapped with BB rating grades as given below: Please acknowledge receipt. Yours Sincerely, (Mohammad Jamal Uddin) General Manager Phone: 9530095 Long Term Short Term BB’s Rating Grade Equivalent Notch/Notation of BDRAL BB’s Rating Grade Equivalent Notch/Notation of BDRAL 1 AAA S1 ST-1 AA+, AA, AA￾2 A+, A, A- S2 ST-2 3 BBB+, BBB, BBB- S3 ST-3 4 BB+, BB, BB- S4 ST-4 5 B+, B, B-, CCC+, CCC, CCC-, CC S5 ST-5 6 C, D S6 ST-6