• PRU 4.12.6 PRU 4.12.6

    (1) Subject to Rule 4.12.8, an Authorised Person must risk-weight any CR Exposure in the PSE asset class in accordance with the following table:

    Risk Weights for the PSE asset class

    Credit Quality Grade 1 2 3 4 5 6 Unrated
    Risk Weight 20% 50% 100% 100% 100% 150% 100%
    (2) In (1), sovereign PSEs in the UAE and GCC that exhibit Credit Risks comparable to their central government must be treated in accordance with the requirements set out in Rule 4.12.5.
    (3) For the purposes of this Rule, a sovereign PSE is a PSE which has been designated as such by its national authorities.
    (4) Any foreign currency claims on sovereign PSEs which are determined to meet the conditions of (2) must be treated as one grade less favourable than the risk weight allocated in accordance with Rules 4.12.4 and 4.12.5.

    • Guidance

      Any PSE which exhibits risk characteristics of a commercial enterprise should be treated in accordance with Rules 4.12.13 to 4.12.15.