S.L. 370.15 Art. 23Reliance on credit ratings for the purposes of assessing creditworthinessof an entity or financial instrument.

In encouraging certain investment firms to develop internal credit risk assessment capacity and to increase use of internal ratings based approach for calculating own funds requirements, the competent authority shall monitor, taking into account the nature, scale and complexity of the investment firms’ activities, that such investment firms do not solely or mechanistically rely on external credit ratings for assessing the creditworthiness of an entity or financial instrument.