When carrying out an assessment referred to in Article 3(1) relating to the LDP counterparties set out in template 101 of Annex I of Implementing Regulation (EU) 2016/2070, competent authorities shall assess whether the differences between the own funds requirements for credit risk of an institution and those of its peers are driven by any of the following:
different rank ordering of the counterparties included in the LDP samples or different PD levels assigned to each grade;
specific facility types, collateral instruments or location of the counterparties;
heterogeneity in the PDs, LGDs, maturities or conversion factors;
level of independency from external ratings assessment and frequency in the internal rating update.
Where an institution classifies a counterparty as "defaulted" while other institutions classify it as "performing", or vice versa, competent authorities shall apply the approach referred to in paragraph 1 to that counterparty.