AI Summary of Article 139 Issuer and issue credit assessment
This document outlines the protocol for assigning risk weights to credit exposures based on available credit assessments. If a specific credit assessment exists for the issuing programme linked to the exposure, that assessment will determine the applicable risk weight. In cases where no direct assessment is available, but there is a relevant assessment for a related programme or a general issuer assessment, those can be applied under certain conditions regarding the risk weights and ranking of the exposure.
It is important to note that credit assessments for issuers within a corporate group are not interchangeable among different issuers within the same group, ensuring that each entity's exposure is assessed independently.
Article 139 Issuer and issue credit assessment
1. Where a credit assessment exists for a specific issuing programme or facility to which the item constituting the exposure belongs, this credit assessment shall be used to determine the risk weight to be assigned to that item.
2. Where no directly applicable credit assessment exists for a certain item, but a credit assessment exists for a specific issuing programme or facility to which the item constituting the exposure does not belong or a general credit assessment exists for the issuer, then that credit assessment shall be used in either of the following cases:
(a) the credit assessment produces a higher risk weight than would be the case if the exposure were treated as unrated and the exposure concerned:
(i) is not a specialised lending exposure;
(ii) ranks pari passu or junior in all respects to the specific issuing programme or facility or to senior unsecured exposures of that issuer, as relevant;
(b) the credit assessment produces a lower risk weight than would be the case if the exposure were treated as unrated and the exposure concerned: