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Chapter: | 155L
 | Title: | Banking (Capital) Rules | Gazette Number: | E.R. 1 of 2012 |
| Section: | 61 | Heading: | Corporate exposures | Version Date: | 09/02/2012 |
(1) Subject to subsection (2), where a corporate has an ECAI issuer rating, or an ECAI issue specific rating assigned to a debt obligation issued or undertaken by the corporate, an authorized institution shall map the ECAI issuer rating or ECAI issue specific rating, as the case may be, to a scale of credit quality grades represented by the numerals 1, 2, 3, 4 and 5 in accordance with Part 1 of Table C in Schedule 6. (L.N. 137 of 2011)
(2) Where an ECAI issue specific rating referred to in subsection (1) is a short-term ECAI issue specific rating as referred to in subsection (6), then subsections (6) and (7) apply.
(3) Subject to subsections (4), (5), (6), (7), (8) and (9) and section 69, an authorized institution shall allocate a risk-weight to a corporate exposure in accordance with Part 1 of Table C in Schedule 6. (L.N. 137 of 2011)
Table 7
(Repealed L.N. 137 of 2011)
(4) Subject to subsections (8) and (9), where an authorized institution has an exposure to a corporate which has none of the following¡X
- (a) an ECAI issuer rating;
(b) a long-term ECAI issue specific rating assigned to a debt obligation issued or undertaken by the corporate;
(c) a short-term ECAI issue specific rating assigned to the exposure,
(5) Where a corporate falls within subsection (4)¡X
- (a) subject to paragraph (b), an authorized institution shall not allocate a risk-weight to an exposure to the corporate which is lower than the risk-weight applicable to the credit quality grade allocated to the sovereign of the jurisdiction in which the corporate is incorporated in accordance with section 55 on the basis of an ECAI issuer rating assigned to the sovereign;
(b) if the sovereign referred to in paragraph (a) does not have an ECAI issuer rating, an authorized institution shall allocate a risk-weight of 100% to the exposure.
(7) Subject to section 69, where a corporate has a short-term ECAI issue specific rating assigned to an exposure of an authorized institution to the corporate, the institution shall allocate a risk-weight to the exposure in accordance with Part 1 of Table E in Schedule 6. (L.N. 137 of 2011)
Table 8
(Repealed L.N. 137 of 2011)
(8) Where¡X
- (a) pursuant to subsections (6) and (7), an authorized institution allocates a risk-weight of 150% to an exposure to a corporate; or
(b) the institution knows that¡X
- (i) another person (including another authorized institution) has an exposure to the corporate which has a short-term ECAI issue specific rating; and
(ii) if subsections (6) and (7) applied to the exposure referred to in subparagraph (i), it would be allocated a risk-weight of 150% pursuant to those subsections,
(9) Where¡X
- (a) pursuant to subsections (6) and (7), an authorized institution allocates a risk-weight of 50% or 100% to an exposure to a corporate; or
(b) the institution knows that¡X
- (i) another person (including another authorized institution) has an exposure to the corporate which has a short-term ECAI issue specific rating; and
(ii) if subsections (6) and (7) applied to the exposure referred to in subparagraph (i), it would be allocated a risk-weight of 50% or 100% pursuant to those subsections,
- (c) subject to paragraph (d), allocate a risk-weight of 100% to each other exposure it has to the corporate which¡X
- (i) does not have an ECAI issue specific rating; and
(ii) has a residual maturity of not greater than¡X
- (A) the original maturity of the exposure referred to in paragraph (a); or
(B) the original maturity of the exposure referred to in paragraph (b),