Assignment of obligors and exposures

10.1 For the purpose of assigning obligors to an obligor grade as part of the credit approval process in accordance with Article 172(1)(a) of the Credit Risk: Internal Ratings Based Approach (CRR) Part, as well as for the purpose of the review of those assignments, in accordance with Article 173(1)(b) of the Credit Risk: Internal Ratings Based Approach (CRR) Part, firms should ensure that each and every natural or legal person in respect of which an IRB exposure exists is rated by the firm with the model approved to be used for the applicable type of exposures. The model should rate original obligors within the applicable rating system including where unfunded credit protection is recognised in accordance with Article 160(4) of the Credit Risk: Internal Ratings Based Approach (CRR) Part.

10.2 For the purpose of assigning retail exposures to grades or pools as part of the credit approval process in accordance with Article 172(2) of the Credit Risk: Internal Ratings Based Approach (CRR) Part, as well as for the purpose of the review of those assignments in accordance with Article 173(2) of the Credit Risk: Internal Ratings Based Approach (CRR) Part, firms should ensure that each and every IRB exposure is rated by the firm with the model approved to be used for the applicable type of exposures as defined in Rule 1.3 of the Credit Risk: Internal Ratings Based Approach (CRR) Part. This model should rate original obligors or exposures within the applicable rating system including where unfunded credit protection is recognised in accordance with Article 163(4) of the Credit Risk: Internal Ratings Based Approach (CRR) Part.