Updated 22/10/2024
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Article 5 - Assessing that a credit rating methodology is systematic

Article 5

Assessing that a credit rating methodology is systematic

1.   A credit rating agency shall use a credit rating methodology and its associated analytical models, key credit rating assumptions and criteria that are applied systematically in the formulation of all credit ratings in a given asset class or market segment unless there is an objective reason for diverging from it.

2.   A credit rating agency shall use a credit rating methodology which is capable of promptly incorporating the findings from any review of its appropriateness.