PINS A3.1.2 Using different credit rating agencies

(1) An insurer must rely on the ratings issued by the same credit rating agency for determining counterparty grades unless the insurer has good reason to use a different credit rating agency or agencies.

Examples of good reasons

1 If the rating agency usually used by the insurer does not issue a solicited credit rating for a particular debt obligation and only 1 other rating agency issues a solicited credit rating for the debt obligation
2 If the rating agency usually used by the insurer does not issue a solicited credit rating for a particular debt obligation, any credit ratings issued by the other rating agencies in table A3.1.1 must be considered and the procedure in rule A3.1.2 (2) used to determine which rating agency will be used.
(2) If a counterparty or debt obligation has been rated by more than 1 rating agency and there are 2 or more ratings that lead to different capital charges, the insurer must use the credit rating that results in the highest capital charge.
(3) An insurer must not use the rating of an agency that is not in table A3.1.1 unless the insurer has the written permission of the Regulatory Authority.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).