Introduction
Functions of a Credit Risk Rating System 1
Expectations of Bank Credit Risk Rating Systems 3
Developments in Bank Risk Rating Systems 4
Risk Rating Process Controls 8
Examining the Risk Rating Process 11
Rating Credit Risk 13
The Credit Risk Evaluation Process 21
Financial Statement Analysis 22
Other Repayment Sources 24
Qualitative Considerations 24
Credit Risk Mitigation 25
Accounting Issues 31
Appendices
A. Nationally Recognized Rating Agencies Definitions 35
B. Write-Up Standards, Guidelines, and Examples 41
C. Rating Terminology 51
D. Guarantees 53
E. Classification of Foreign Assets 54
F. Structural Weakness Elements 62
References 67