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Version date: 12 September 2024 - onwards

11 External Credit Ratings

11.1 For the purpose of risk weighting exposures to institutions, firms must not use an ECAI credit assessment that incorporates assumptions of implicit government support in accordance with Article 138(1)(g) of the Credit Risk: Standardised Approach (CRR) Part.

11.2 Where an ECAI's credit assessment methodology includes considerations of implicit government support, but the ECAI attributes no value for implicit government support in the final credit assessment and has stated this publicly, the PRA considers that the credit assessment should not be treated as incorporating assumptions of implicit government support. Where a firm is using a credit assessment that attributes no value to implicit government support, it should have in place robust processes to ensure that it ceases to use the credit assessment if it is updated in a manner that starts assigning value to any implicit government support.