Commission Implementing Regulation (EU) 2016/1799Show full title

Commission Implementing Regulation (EU) 2016/1799 of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Articles 136(1) and 136(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance)

Article 10U.K.Meaning and relative position of a rating category

1.The meaning of a rating category established by the ECAI shall be set according to the characteristics of the capacity of financial commitments as reflected in the items assigned such rating category being honoured, and more in particular by its degree of sensitivity to the economic environment and its degree of proximity to the default situation.

2.The meaning of a rating category shall be compared to the one established for each credit quality step, as set out in Article 15.

3.The meaning of a rating category shall be considered in combination with its relative position within the rating scale established by the ECAI.