Recognized rating agencies
Pursuant to Article 125, paragraph 4 of the Decision on Capital Adequacy of Banks (OGM 38/11, 55/12, 82/17), the CBCG determines and publishes the list of external institutions for assigning credit ratings, whose credit assessments banks may use for the calculation of their capital requirements for credit risk (recognized external institutions), as well as the distribution of credit ratings of the recognized external institutions under specified credit quality steps specified in the aforesaid decision.
I. Overview of external institutions whose credit assessments can be used by banks in the process of calculating capital requirements for credit risk (recognized external institutions):
No. | Name of recognized external institutions | Market segments for which banks may use the ratings of recognized external institutions |
1. | Standard & Poor’s | - public finances, commercial entities (including companies and financial institutions) |
2. | Moody’s Investors Service Ltd | - public finances, commercial entities (including companies and financial institutions) |
3. | Fitch Ratings | - public finances, commercial entities (including companies and financial institutions) |
II. Distribution of credit ratings under credit quality steps:
Type of | Credit | Rating mark | ||
Standard&Poor's | Moody's | Fitch | ||
Long-term | 1 | AAA to AA- | Aaa to Aa 3 | AAA to AA- |
2 | A+ to A- | A1 to A3 | A+ to A- | |
3 | BBB+ to BBB- | Baa 1 to Baa 3 | BBB+ to BBB- | |
4 | BB+ to BB- | Ba 1 to Ba 3 | BB+ to BB- | |
5 | B+ to B- | B1 to B 3 | B+ to B- | |
6 | CCC+ and lower | Caa 1 and lower | CCC+ and lower | |
Short-term | 1 | A-1+, A-1 | P-1 | F1+, F1 |
2 | A-2 | P-2 | F2 | |
3 | A-3 | P-3 | F3 | |
4 | All short-term ratings lower than A-3 | NP | All short-term ratings lower than F3 | |
5 | - | - | - | |
6 | - | - | - | |