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  • Range of Eligible Guarantors (Counter-Guarantors)/Protection Providers

    • CA-4.5.7

      Credit protection given by the following entities will be recognised:

      (a) Sovereign entities33, PSEs, banks34 and securities firms with a lower risk weight than the counterparty;
      (b) Other entities that are externally rated except where credit protection is provided to a securitisation exposure. This would include credit protection provided by parent, subsidiary and affiliate companies when they have a lower risk weight than the obligor; and
      (c) When credit protection is provided to a securitisation exposure, other entities that currently are externally rated BBB- or better and that were externally rated A- or better at the time the credit protection was provided. This would include credit protection provided by parent, subsidiary and affiliate companies when they have a lower risk weight than the obligor.

      33 This includes the Bank for International Settlements, the International Monetary Fund, the European Central Bank and the European Community, as well as those MDBs referred to in CA-3.2.8.

      34 This includes other MDBs.

      January 2015

    • CA-4.5.7A

      Credit default guarantee provided by Tamkeen is recognised as an eligible credit risk mitigant.

      Added: January 2023