This category features the broadest application of the use of credit ratings. Member authorities from every jurisdiction submitting responses indicated that their LRSPs contained provisions using credit ratings for the purpose of determining net or regulatory capital, and more LRSPs are applied to capital requirements than to any other category of use. Credit ratings were generally used in those LRSPs as a means of mapping credit risks to capital charges or risk weights. A related use for ratings in LRSPs is the determination of margin rates; for example, certain sovereign bonds and debentures may be subject to lower margin rates.
