(1) Subject to paragraph (6) below, the PRA must recognise an ECAI as eligible for exposure risk-weighting purposes only if the PRA is satisfied -
(a) where the requirements of Article 2(3) of the EC Regulation apply to the ECAI, that the ECAI has complied with those requirements; and
(b) taking into account the requirements set out in Schedule 1, that -
(i) the ECAI's assessment methodology complies with the requirements of objectivity, independence, ongoing review and transparency; and
(ii) the ECAI's credit assessments meet the requirements of credibility and transparency.
(2) The PRA may recognise an ECAI as eligible for exposure risk-weighting purposes without carrying out its own evaluation process if the ECAI has been recognised as eligible for those purposes by a competent authority of another EEA State.
(3) Where the PRA recognises an ECAI as eligible for exposure risk-weighting purposes, it must determine, taking into account the requirements set out in Schedule 2, with