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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.

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ANNEX I Correspondence of Probability of default ( PD ) to Credit quality steps for the purposes of Articles 6 and 7

An internal rating with a PD equal to or lower than the value in Table 1 shall be associated to the corresponding credit quality step.

Table 1

Credit Quality Step

Probability of default, as defined in Article 4(54) of Regulation (EU) 575/2013 lower than or equal to:


0,10 %


0,25 %


1 %


7,5 %