Citigroup Inc.

Corporate Loan DetailsFor corporate clients and investment banking activities across Citigroup, thecredit process is grounded in a series of fundamental policies, in additionto those described under “Managing Global Risk—Risk Management—Overview,” above. These include:• joint business and independent risk management responsibility formanaging credit risks;• a single center of control for each credit relationship that coordinatescredit activities with that client;• portfolio limits to ensure diversification and maintain risk/capitalalignment;• a minimum of two authorized credit officer signatures required onextensions of credit, one of which must be from a credit officer in creditrisk management;• risk rating standards, applicable to every obligor and facility; and• consistent standards for credit origination documentation and remedialmanagement.Corporate Credit PortfolioThe following table represents the corporate credit portfolio (excludingPrivate Banking), before consideration of collateral, by maturity at December31, 2010. The corporate portfolio is broken out by direct outstandings thatinclude drawn loans, overdrafts, interbank placements, bankers’ acceptances,certain investment securities and leases, and unfunded commitmentsthat include unused commitments to lend, letters of credit and financialguarantees.In billions of dollarsDuewithin1 yearGreaterthan 1 yearbut within5 yearsAt December 31, 2010 At December 31, 2009Greaterthan5 yearsTotalexposureDuewithin1 yearGreaterthan 1 yearbut within5 yearsGreaterthan5 yearsTotalexposureDirect outstandings $191 $ 43 $ 8 $242 $213 $ 66 $ 7 $286Unfunded lending commitments 174 94 19 287 182 120 10 312Total $365 $137 $27 $529 $395 $186 $17 $598Portfolio MixThe corporate credit portfolio is diverse across counterparty, industry,and geography. The following table shows the percentage of directoutstandings and unfunded commitments by region:December 31,2010December 31,2009North America 47% 51%EMEA 28 27Latin America 7 9Asia 18 13Total 100% 100%loss-given default of the facility, such as support or collateral, are takeninto account. With regard to climate change risk, factors evaluated includeconsideration of the business impact, impact of regulatory requirements, orlack thereof, and impact of physical effects on obligors and their assets.These factors may adversely affect the ability of some obligors to performand thus increase the risk of lending activities to these obligors. Citigroupalso has incorporated climate risk assessment criteria for certain obligors,as necessary. Internal obligor ratings equivalent to BBB and above areconsidered investment grade. Ratings below the equivalent of the BBBcategory are considered non-investment grade.The maintenance of accurate and consistent risk ratings across thecorporate credit portfolio facilitates the comparison of credit exposure acrossall lines of business, geographic regions and products.Obligor risk ratings reflect an estimated probability of default for anobligor and are derived primarily through the use of statistical models(which are validated periodically), external rating agencies (under definedcircumstances) or approved scoring methodologies. Facility risk ratingsare assigned, using the obligor risk rating, and then factors that affect the114