{
  "url": "https://openlegislation.uk/eu-regulation-2016-1799/annex-II",
  "json_url": "https://openlegislation.uk/eu-regulation-2016-1799/annex-II.json",
  "legislation": "eur/2016/1799",
  "legislation_title": "Commission Implementing Regulation (EU) 2016/1799 of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Articles 136(1) and 136(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2016-1799",
  "path": "annex/II",
  "kind": "annex",
  "number": "II",
  "heading": "Reference meaning of the rating category per credit quality step for the purposes of Article 15",
  "text": "Credit Quality Step\nMeaning of the rating category\n1\nThe rated entity has extremely/very strong capacity to meet its financial commitments and is subject to minimal/very low credit risk.\n2\nThe rated entity has strong capacity to meet its financial commitments and is subject to low credit risk but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than rated entities in CQS 1.\n3\nThe rated entity has adequate capacity to meet its financial commitments and is subject to moderate credit risk.\nHowever, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the rated entity to meet its financial commitments.\n4\nThe rated entity has the capacity to meet its financial commitments but is subject to substantial credit risk.\nIt faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions, which could lead to the rated entity's inadequate capacity to meet its financial commitments.\n5\nThe rated entity has the capacity to meet its financial commitments but is subject to high credit risk.\nAdverse business, financial, or economic conditions will likely impair the rated entity's capacity or willingness to meet its financial commitments.\n6\nThe rated entity is currently vulnerable or highly vulnerable and is subject to very high credit risk, including in or very near to default.\nIt is dependent upon favourable business, financial, and economic conditions to meet its financial commitments.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2016/1799/annex/II",
    "retrieved_at": "2026-11-01T14:45:28.562482+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}