CA-3.4.28
When the project is rated by an ECAI, the RW based on the credit rating of the "off-taker" (third-party buyer) is applied to calculate the capital adequacy requirement. Otherwise, the RW must be based on the "supervisory slotting criteria" approach for specialised financing (project finance) as set out in Appendix CA-5, which carries RWs as given below:
Supervisory Categories | Strong | Good | Satisfactory | Weak |
External credit assessments | BBB- or better | BB+ or BB | BB- to B+ | B to C- |
Risk weights | 70% | 90% | 115% | 250% |
January 2015