1. User Guide
  2. Business Assumptions
  3. Business Assumption Definition
  4. Assumption Properties
  5. Ratings Downgrade

8.6.3.11 Ratings Downgrade

Ratings downgrade caters to the downgrade of a legal entity’s rating. This option identifies the downgrade level for the purpose of triggering the need for additional collateral. This parameter identifies the downgrade specified for a legal entity.

This downgrade can either be specified as:

  • Rating Based or,
  • Notches Based

Note:

This is applicable only on selection of the sub category Encumbrance and Ratings Downgrade as part of the assumption categories Incremental Cash Flow or Encumbrance.