2.1. Eligibility of protection providers under all approaches

The following parties may be recognised as eligible providers of unfunded credit protection: central governments and central banks; regional governments or local authorities; multilateral development banks; international organisations exposures to which a 0 % risk weight under Articles 78 to 83 is assigned; public sector entities, claims on which are treated by the competent authorities as claims on institutions or central governments under Articles 78 to 83; institutions; and other corporate entities, including parent, subsidiary and affiliate corporate entities of the credit institution, that: have a credit assessment by a recognised ECAI which has been determined by the competent authorities to be associated with credit quality step 2 or above under the rules for the risk weighting of exposures to corporates under Articles 78 to 83; and in the case of credit institutions calculating risk‐weighted exposure amounts and expected loss amounts under Articles 84 to 89, do not have a credit assessment by a recognised ECAI and are internally rated as having a PD equivalent to that associated with the credit assessments of ECAIs determined by the competent authorities to be associated with credit quality step 2 or above under the rules for the risk weighting of exposures to corporate under Articles 78 to 83. Where risk‐weighted exposure amounts and expected loss amounts are calculated under Articles 84 to 89, to be eligible a guarantor must be internally rated by the credit institution in accordance with the provisions of Annex VII, Part 4. By way of derogation from point 26, the Member States may also recognise as eligible providers of unfunded credit protection, other financial institutions authorised and supervised by the competent authorities responsible for the authorisation and supervision of credit institutions and subject to prudential requirements equivalent to those applied to credit institutions.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.