KBRA has been recognized by Taiwan’s Financial Supervisory Commission (FSC) as a “qualified external rating agency” for the determination of ratings-based capital adequacy and risk weightings for use by local securities firms, according to a final ruling on April 11, 2023.
A KBRA rating of BBB- or above would qualify bonds or credit derivative products held by Taiwanese securities firms as investment grade for the purpose of calculating risk weightings. The latest announcement follows similar FSC rulings on February 3 and February 16 that recognize the use of KBRA’s ratings when calculating local banks’ and insurance companies’ capital adequacy requirements related to their debt holdings, respectively.
The final ruling means that the FSC now recognizes all KBRA ratings for use in capital adequacy calculations related to all banking, insurance, and securities industries in Taiwan.
“We are excited to be accepted by the FSC for use in capital adequacy requirements in Taiwan,” said Jim Nadler, CEO of KBRA. “We look forward to providing all market participants around the world with an unparalleled view on ratings driven by KBRA’s best-in-class analysis and research.”
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.