(Article 22 of Regulation (EU) 2017/1131)

1. Managers of MMFs shall validate the credit quality assessment methodologies referred to in Article 19(3) of Regulation (EU) 2017/1131 provided they fulfil all of the following criteria:

(a) the internal credit quality assessment methodologies are applied in a systematic way with respect to different issuers and instruments;

(b) the internal credit quality assessment methodologies are supported by a sufficient number of relevant qualitative and quantitative criteria;

(c) the internal credit quality assessment methodologies' qualitative and quantitative inputs are reliable, using data samples of an appropriate size;

(d) past internal credit quality assessments produced using the internal credit quality assessment methodologies have been properly reviewed by the managers of the MMFs in question to determine whether the credit quality assessment methodologies are a suitable indicator of credit quality;

(e) the internal credit quality assessment methodologies contain controls and processes for their development and related approvals that allow for suitable challenge;

(f) the internal credit quality assessment methodologies incorporate factors that managers of MMFs deem relevant to determine the credit quality of an issuer or an instrument;