Entire Section

  • Corporate Asset Class

    • PIB 4.12.13

      Subject to Rules PIB 4.12.14 and PIB 4.12.15, an Authorised Firm must risk-weight any CR Exposure in the corporate asset class in accordance with the following table:

      Risk Weights for the corporate asset class

      Credit Quality Grade 1 2 3 4 5 6 Unrated
      Risk Weight 20% 50% 100% 100% 150% 150% 100%
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 4.12.14

      An Authorised Firm must risk-weight any short-term CR Exposure in the corporate asset class with an issue-specific external credit assessment in accordance with the following table:

      Risk Weights for short-term CR Exposures in the corporate asset class with issue-specific external credit assessments.

      Short-Term Credit Quality Grade I II III IV
      Risk Weight 20% 50% 100% 150%
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 4.12.15

      The risk weight for any CR Exposure in the corporate asset class that does not have an external credit assessment by a recognised external credit rating agency must be the risk weight determined in accordance with the table under PIB Rule 4.12.13 or the risk weight that is applicable to an CR Exposure to the central government of the jurisdiction in which the corporate is incorporated or established, whichever is higher. If a short-term CR Exposure in the corporate asset class with an issue-specific external credit assessment:

      (a) attracts a risk weight of 50% or 100%, then the Authorised Firm must apply a risk weight of not lower than 100% to any unrated short-term CR Exposure to the same corporate; or
      (b) attracts a risk weight of 150%, then the Authorised Firm must apply a risk weight of 150% to any unrated CR Exposure (whether long-term or short-term) to the same corporate.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]