Norm Reforming Article 6 of the Capital Adequacy Standard

RESOLUTION CDMF-VII-6-25
Dated March 5, 2025
NORM REFORMING ARTICLE 6 OF THE CAPITAL ADEQUACY STANDARD

The Monetary and Financial Board,

CONSIDERING

I
That on October 27, 2010, the "Capital Adequacy Standard" was approved, contained in Resolution No. CD-SIBOIF-651-1-OCTU27-2010, published in La Gaceta, Official Journal No. 18, on January 28, 2011.

II
That Article 156 of Law No. 1232, "Law on the Administration of the Monetary and Financial System" (hereinafter, Law No. 1232), published in La Gaceta, Official Journal No. 241, on December 30, 2024, establishes that "...all powers, competencies, authorities, attributes, and duties established in other laws prior to the effectiveness of this present Law, attributed to the Board of Directors of the Central Bank and to the Board of Directors of the Superintendence of Banks..." are transferred to the Monetary and Financial Board.

III
That it is necessary to reform Article 6 of the standard referred to in the first consideration of this resolution, in order to update the table of risk rating categories, adapting it to the methodological changes made by rating agencies.

IV
That in accordance with the considerations stated above and based on the authority granted by Article 17, subsection A, items 1) and 3) and subsection C, items 1) and 7), of the aforementioned Law No. 1232.

In exercise of its powers,

HAS ISSUED

The following:

NORM REFORMING ARTICLE 6 OF THE CAPITAL ADEQUACY STANDARD

FIRST: Article 6, subsection D, item 3) of the Capital Adequacy Standard, contained in Resolution No. CD-SIBOIF-651-1-OCTU27-2010, of October 27, 2010, published in La Gaceta, Official Journal No. 18, on January 28, 2011, and its amendments, are hereby reformed, to read as follows:

"Art. 6 Credit risk-weighted assets.- Risk assets shall be weighted as follows:

(...)

D) With a weighting between zero and one hundred fifty percent of their value (0% to 150%), the following items:

(...)

3. Investments in debt instruments issued by foreign states or central banks according to the issuer's long-term sovereign risk rating.

The long-term emission risk rating shall be in accordance with the ratings of the following Rating Agencies:

Weighting	Rating Agencies
	Fitch IBCA	Moody's	Investors Services	Standard & Poor's Corporation	Dominion Bond Rating Services Limited	Kroll Bond Rating Agency, Inc.	Centroamerican Rating Agency, S.A. (Moody's Local)	Pacific Credit Rating, S.A. de C.V.
0%	AAA to AA-	Aaa to Aa3	AAA to AA-	AAA to AA-	AAA to AA-	AAA to AA-	AAA to AA-
20%	A+ to A-	A1 to A3	A+ to A-	A+ to A-	A+ to A-	A+ to A-	A+ to A-
50%	BBB+ to BBB-	Baa1 to Baa3	BBB+ to BBB-	BBB+ to BBB-	BBB+ to BBB-	BBB+ to BBB-	BBB+ to BBB-
100%	BB+ to B- and Unrated	Ba1 to B3 and Unrated	BB+ to B- and Unrated	BB+ to B- and Unrated	BB+ to B- and Unrated	BB+ to B- and Unrated	BB+ to B- and Unrated
150%	Below B-	Below B3	Below B-	Below B-	Below B-	Below B-	Below B-

The Superintendent may update the above table in the event of new authorized and registered rating agencies in the registry kept by the Superintendence for these purposes, establishing the link between the agency's rating scale and the corresponding risk weighting. Likewise, it may be updated when new internationally recognized rating agencies are determined, or in the event that these entities modify their risk rating nomenclatures; which shall be communicated via circular to financial institutions.

In the case of more than one risk rating existing, to determine the corresponding weighting, the lowest rating among those published by the rating agencies shall be applied.

(...)

SECOND: This norm shall enter into force upon notification by the Superintendence of Banks and Other Financial Institutions, without prejudice to its subsequent publication in La Gaceta, Official Journal.

(f) legible, Ovidio Reyes R., President of the Board; (f) illegible, Luis Ángel Montenegro Espinoza, Vice President of the Board; (f) illegible, Bruno Gallardo, Minister of Finance, Proprietary Member; (f) illegible, Roberto Rivas, Non-executive Proprietary Member; (f) illegible, Hugo Ortega, Non-executive Proprietary Member.

The undersigned Ruth Elizabeth Rojas Mercado, Secretary of the Monetary and Financial Board, certifies that it conforms to its original, with which it was duly compared.