MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4611.12.31Agency INTERNATIONAL RATINGSS&P AAA AA+ AA AA- A+ A A-Moody’s Aaa Aa1 Aa2 Aa3 A1 A2 A3Fitch AAA AA+ AA AA- A+ A A-Agency DOMESTIC RATINGSPhilRatings AAA Aa+ Aa Aa- A+ A A-Agency INTERNATIONAL RATINGSS&P BBB+ BBB BBB- BB+ BB BB- B+Moody’s Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1Fitch BBB+ BBB BBB- BB+ BB BB- B+Agency DOMESTIC RATINGSPhilRatings Baa+ Baa Baa- Ba+ Ba Ba- B+Agency INTERNATIONAL RATINGSS&P B B-Moody's B2 B3Fitch B B-AgencyPhilRatings B B-DOMESTIC RATINGS57. The BSP will issue the mapping ofratings of other rating agencies as soon as itis recognized by the BSP for regulatorycapital purposes.National Rating Systems58. With prior BSP approval,international credit rating agencies may havenational rating systems developedexclusively for use in the Philippines usingthe Philippine sovereign as reference highestcredit quality anchor.Multiple Assessments59. If an exposure has only one ratingby any of the BSP recognized creditassessment agencies, that rating shall beused to determine the risk weight of theexposure; in cases where there are two ormore ratings which map into different riskweights, the higher of the two lowest riskweights should be used.Issuer versus issue assessments60. Any reference to credit rating shallrefer to issue-specific rating; the issuer ratingmay be used only if the exposure being riskweightedis:a) an unsecured senior obligation ofthe issuer and is of the same denominationapplicable to the issuer rating (e.g., localcurrency issuer rating may be used for riskweighting local currency denominatedsenior claims);b) short-term; andc) in cases of guarantees.61. For loans, risk weighting shalldepend on either the rating of the borroweror the rating of the unsecured seniorobligation of the borrower: Provided, Thatin case of the latter, the loan is of the samecurrency denomination as the unsecuredQ RegulationsAppendix Q-46 - Page 20Manual of Regulations for Non-Bank Financial Institutions