The approach to guarantees and credit derivatives closely follows the treatment under the standardised approach as specified in paragraphs CA-4.5.1 to CA-4.5.13. The range of eligible guarantors is the same as under the standardised approach except that companies that are internally rated and associated with a PD equivalent to A- or better may also be recognised. To receive recognition, the requirements outlined in paragraphs CA-4.5.1 to CA-4.5.6 must be met.