CA-14.13.4
For IRC-covered positions, the IRC captures:
(a) Default risk. This means the potential for direct loss due to an obligor's default as well as the potential for indirect losses that may arise from a default event; and
(b) Credit migration risk. This means the potential for direct loss due to an internal/external rating downgrade or upgrade as well as the potential for indirect losses that may arise from a credit migration event.
Added: January 2012