Change in Rating Based on Risk Category of Country* Country Ratings Cash Mitigations, Net Change Advance Country in CRA Rating Classified from under different First Class Categories Bank/ECGC Cover a b c D=b-c e 1 Insignificant Risk NIL 2 Very Low Risk NIL 3 Low Risk NIL 4 Low Medium Risk NIL 5 Medium Risk NIL 6 Medium Risk but under Down by caution 1 Stage 7 High Risk and under Down by caution 2 stage 8 Very high risk and Down by caution 3 9 Off Credit/ Restricted Down by and under caution 4 stage from Medium Risk XXX YYY ZZZ to off Credit/ Restricted & under caution (5 to 10) * Latest Country Ratings are circulated by IBG of SBI are given in annexure and will be updated from time to time. Final CRA Rating after country Risk would be determined as indicated in following example: Risk CRA Rating Corresponding CRA Rating CRA Categories before Downgrade after Rating after downgrade Downgrade country Risk (Lower of SBIBL8/SBIBL9) Medium Risk SBIBL-8 NIL SBIBL-8 Medium Risk SBIBL-8 Down by stage SBIBL-9 SBIBL-9 but under 1 caution #If the Borrower rating undergoes a downgrade of 2 more stages on account of country risk, the sanction be required to be obtained from the Board of Directors.
Change in Rating Based on Risk Category of Country* Country Ratings Cash Classified under different Categories Mitigations, Advance from First Class Bank/ECGC Cover Net Country Change in CRA Rating a b c D=b-c e 1 Insignificant Risk NIL 2 Very Low Risk NIL 3 Low Risk NIL 4 Low Medium Risk NIL 5 Medium Risk NIL 6 Medium Risk but under caution Down by 1 Stage 7 High Risk and under caution Down by 2 stage 8 Very high risk and caution Down by 3 9 Off Credit/ Restricted and under caution Down by 4 stage from Medium Risk to off Credit/ Restricted & under caution (5 to 10) XXX YYY ZZZ * Latest Country Ratings are circulated by IBG of SBI are given in annexure and will be updated from time to time. Final CRA Rating after country Risk would be determined as indicated in following example: Risk Categories CRA Rating before downgrade Corresponding Downgrade CRA Rating after Downgrade CRA Rating after country Risk (Lower of SBIBL8/SBIBL9) Medium Risk SBIBL-8 NIL SBIBL-8 SBIBL-9 Medium Risk but under caution SBIBL-8 Down by stage 1 SBIBL-9 #If the Borrower rating undergoes a downgrade of 2 more stages on account of country risk, the sanction be required to be obtained from the Board of Directors.
Credit-Risk-Assessment-model-for-Rating-Credit-Proposal.docx