The requirements to be met for the purposes of point (a) of Article 176a(3) by an insurance or reinsurance undertaking's own internal credit assessment of a bond or loan shall be as follows:

(b) the bond or loan is allocated a credit quality step on the basis of the own internal credit assessment;

(c) the insurance or reinsurance undertaking is able to demonstrate to the supervisory authority's satisfaction that the own internal credit assessment, and the allocation of a credit quality step to the bond or loan on the basis of that assessment, are reliable and properly reflect the spread risk of the bond or loan contained in the sub-module specified in point (d) of the second subparagraph of Article 105(5) of Directive 2009/138/EC;

(d) the own internal credit assessment takes into account all factors which could have a material effect on the credit risk associated with the bond or loan, including the following factors:

(i) the competitive position of the issuer;

(ii) the quality of the issuer's management;

(iii) the financial policies of the issuer;

(iv) country risk;

(v) the effect of any covenants that are in place;

(vi) the issuer's financial performance history, including the number of years that it has been operating;