This Chapter sets out the rules relating to the standardized approach to credit risk. The securitisation framework is presented in Chapter CA-6. The standardized approach makes use of external credit assessments⁹ as a means of calculating the risk weight for exposures to certain categories of counterparty.

⁹ The notations follow the methodology used by one institution, Standard & Poor's. The use of Standard & Poor's credit ratings is an example only; those of some other external credit assessment institutions could equally well be used. The ratings used throughout this document, therefore, do not express any preferences or determinations on external assessment institutions by CBB.