Other

Question

According to the FINAL REPORT: REVISED DRAFT ITS ON THE MAPPING OF ECAIS’ CREDIT ASSESSMENTS document the fitch short terming rating F1+ has can credit quality step of 1 and is therefore an equivalent of a AA long term rating. This means that an short term note of, for example, Germany/France/Netherlands a AA rating which is in our opinion quite low. Since the default of those country, especially on an short term is very unlikely? So the question is why does Eiopa consider F1+ as an AA equivalent instead of a AAA equivalent?

European Insurance and Occupational Pensions Authority · Accepted Answer

This question has been rejected because it does not relate to the practical application or implementation of the legal framework covered by this Q&A process.

Moreover, the issue it deals with is already explained in the Fitch Mapping report (page 9) where the following is indicated: “F1+. In particular, F1+ indicates an exceptionally strong intrinsic capacity for timely payment of financial commitments. It is mapped to long-term categories AAA/AA and A+, which are mostly mapped to CQS 1. Therefore, CQS 1 is the proposed mapping.” The individual External Credit Assessment Institutions' mapping reports are available on the EBA website (here).

Other

Question

Answer

Similar Q&As

More Q&As on this topic