ECAI mapping

External Credit Assessment Institutions (ECAI)

According to the Capital Requirements Regulation (CRR) (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, ‘external credit assessment institution' or ECAI means a credit rating agency that is registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies or a central bank issuing credit ratings which are exempt from the application of Regulation (EC) No 1060/2009.
ECAIs play an important role in the standardised approach and securitisation framework of prudential regulation through the mapping of each of their credit assessments to the corresponding risk weights.
The European Banking Authority (EBA), together with ESMA and EIOPA, is responsible for providing an objective mapping across all ECAIs in order to promote a consistent implementation of CRR across the EU. External Credit Assessment Institutions

ECAI mapping

The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA) published on 7 December 2017 the amended Implementing Technical Standards (ITS) on the mapping of credit assessments of ECAI credit risk. The amendments reflect the recognition of five new credit rating agencies including Rating-Agentur Expert RA GmbH. The ITS are part of the EU Single Rulebook for banking and insurance aimed at creating a safe and sound regulatory framework consistently applicable across the EU.

ESAs amended technical standards on the mapping of ECAIs

Draft Implementing Technical Standards amending Implementing Regulation (EU) 2016/1799 on the mapping of ECAIs' credit assessments under Article 136 (1) and (3) of regulation (EU) No575/2013.

With this mapping credit ratings can help reducing the required reserve norms for exposures to rated entities in accordance with the Capital Requirements Regulation.

Draft of the mapping of international credit rating scale of Rating-Agentur Expert RA GmbH under the process of consultation

Credit quality step


Use of ECAI’s unsolicited ratings 

The EBA published on 18 July 2017 a revised Decision confirming the quality of unsolicited credit assessments assigned by certain ECAIs to calculate institutions' capital requirements. Institutions may use unsolicited credit assessments of an ECAI for determining their capital requirements only if the EBA has confirmed that those unsolicited ratings do not differ in quality from solicited ratings of that same ECAI.
On 17 May 2016, the EBA issued a Decision allowing the use of unsolicited credit assessments for 22 ECAIs in the context of the Capital Requirements Regulation.
The revised Decision updates this list with 5 additional ECAIs and the de-registering of 1 ECAI and confirms that unsolicited credit assessments do not differ in quality from solicited ratings. 
revised Decision confirming the quality of unsolicited credit assessments assigned by certain ECAIs

ECAI rating categories are used in Directive 2006/48/EC and Regulation (EU) No 575/2013


Credit quality step

Risk weight