NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 289 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 51. FINANCIAL RISK MANAGEMENT (CONT’D.) (a) Credit risk (cont’d.) (i) Internal Credit Risk Ratings (cont’d.) The table below provides a mapping of the Group’s and of the Bank’s internal credit risk grades to external ratings (cont’d.): Notches KIBB Obligor Rating External Rating Classification of Credit Risk Grade Description 11 12 13 BB1 BB2 BB3 BB Non-Investment Grade Weak capacity to meet its financial obligations. The entity is highly vulnerable to adverse changes in circumstances, economic conditions and/or operating environments. 14 15 16 B1 B2 B3 B Very weak capacity to meet its financial obligations. The entity has a limited ability to withstand adverse changes in circumstances, economic conditions and/or operating environments. 17 18 19 C1 C2 C3 C High likelihood of defaulting on its financial obligations. The entity is highly dependent on favourable changes in circumstances, economic conditions and/or operating environments, the lack of which would likely result in it defaulting on its financial obligations. 20 D D Default Currently in default on either all or a substantial portion of its financial obligations, whether or not formally declared. The D rating may also reflect the filing of bankruptcy and/or other actions pertaining to the entity that could jeopardise the payment of financial obligations.
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