Question ID
2016_2864
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Credit risk
Article
172
Paragraph
1
Subparagraph
d
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n/a
Type of submitter
Credit institution
Subject matter
Rating of subsidiaries
Question

Is “separately rated” in Article 172(1)(d) to be interpreted as “rated on individual information” or as ”having own rating based on a separate rating process”? Alternatively put: How is “separately rated” in Article 172(1)(d) to be interpreted?

Background on the question

The background to the question is to understand whether subsidiaries have to be rated based on individual information (e g capital ratio and market share) or if they can be rated based on their interconnection with the parent company (e.g. committed parental support and subsidiary's importance in group) and the parent company's rating, as long as the subsidiary has an own rating and an own rating process to achieve it according to the bank’s internal policy.

Submission date
Rejected publishing date
Rationale for rejection

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Status
Rejected question