Question
How is the rating and date of most recent rating of counterparty to be reported, in case there is an actual exposure but no valid rating available anymore?
Background on the question
Counterparties with an outdated rating often receive a conservative predefined PD, e.g. PD of the worst non-defaulted rating grade. Which rating and date of most recent rating of counterparty is to be reported in these cases: • The outdated rating with the original date of the rating or • the most recent, e.g. worst non-defaulted, rating grade and the date of the change to the worst non-defaulted rating grade or • anything else?
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.