Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

CHAPTER 2 Qualitative factors

Article 7 Qualitative factors of the mapping of a rating category

The qualitative factors referred to in point (b) of Article 136(2) of Regulation (EU) No 575/2013 shall be:

  1. (a)

    the definition of default considered by the ECAI, as referred to in Article 8;

  2. (b)

    the time horizon of a rating category considered by the ECAI, as referred to in Article 9;

  3. (c)

    the meaning of a rating category and its relative position within the rating scale established by the ECAI, as referred to in Article 10;

  4. (d)

    the creditworthiness of the items assigned the same rating category, as referred to in Article 11;

  5. (e)

    the estimate provided by the ECAI of the long run default rate associated with all items assigned the same rating category, pursuant to point (a) of Article 136(2) of Regulation (EU) No 575/2013, as set out in Article 12;

  6. (f)

    the relationship established by the ECAI ("internal mapping"), where available, between, on the one hand, the rating category which is being mapped, and, on the other hand, other rating categories produced by the same ECAI, where a mapping for the latter categories has already been set out according to this Regulation, as referred to in Article 13;

  7. (g)

    any other relevant information that can describe the degree of risk expressed by a rating category.