CAP119 - Clarification of, and correction to, the table of Users’ Credit Allowances

It is proposed that the CUSC be amended to update the table for Users’ Credit Allowances as a % of Unsecured Credit Cover.  This would clarify the original table setting out all the long term ratings for each ratings agency in relation to the percentage of unsecured credit allowed, as introduced by CAP089/090/091.  The original table lacks a degree of transparency as it groups the ratings strictly in accordance with the Basel II model and does not expressly set out all related ratings.  In other words, instead of referring simply to AAA/AA, it is proposed that the table should explicitly also refer to AA+ and AA-.  Also, the original table was found to contain an error on the Fitch rating, whereby a short term equivalent rating had been inserted alongside the long term ratings.  Therefore it is proposed to replace the three references to B with BB+, BB and BB- respectively.