The asset must be deemed of high credit quality by the national central bank which has included it in its tier two list ( which could include a guarantee of a euro area guarantor which is deemed financially sound by the national central bank which has included the asset in its tier two list ) .

Credit standards

The creditworthiness is assessed using ECAF rules for credit claims

The asset must meet high credit standards .

Credit standards The debt instrument must meet the high credit standards specified in the ECAF rules for marketable assets , as set out in Section 6.3.2 .

CREDIT STANDARDS The debt instrument must meet the high credit standards specified in the ECAF rules for marketable assets , as set out in Section 6.3.2 .

11 They must meet high credit standards .

Establishment of high credit standards for marketable assets

Only high credit quality assets are accepted as collateral .

Credit claims must meet the high credit standards specified in the ECAF rules for nonmarketable assets , as set out in Section 6.3.3 .

Credit claims must meet the high credit standards specified in the ECAF rules for non marketable assets , as set out in Section 6.3.3 .

This implicit credit assessment has to meet the Eurosystem credit quality threshold .

This implicit assessment has to meet the Eurosystem credit quality threshold .

The framework also places strong emphasis on the credit quality assessment of the collateral eligible for policy operations , as this is essential to mitigate credit risk .

Credit claims must meet the high credit standards specified in the ECAF rules for non marketable assets , as set out in Section 6.3.3 .'

Rating requirements for asset backed securities in Eurosystem credit operations

If a credit assessment from the system or source selected by the counterparty exists but is below the credit quality threshold , the debtor or guarantor is ineligible .

35 See footnote 28 in this chapter .

Credit standards The RMBD must meet high credit standards , which are assessed through the part of the ECAF that addresses RMBDs , as set out in Section 6.3.3 .

To ensure that the two asset classes comply with the same credit standards , a Eurosystem credit assessment framework ( ECAF ) has been set up , which relies on different credit assessment sources .

The Governing Council has decided to amend the rating requirements for asset backed securities ( ABSs ) .

Such limits can also be applied to specific counterparties , in particular if the credit quality of the counterparty appears to exhibit a high correlation with the credit quality of the collateral submitted by the counterparty .

Such limits may also be applied to specific counterparties , in particular if the credit quality of the counterparty appears to exhibit a high correlation with the credit quality of the collateral submitted by the counterparty .'

Such measures can also be applied to specific counterparties , in particular if the credit quality of the counterparty appears to exhibit a high correlation with the credit quality of the collateral assets submitted by the counterparty .

Such exclusion can also be applied to specific counterparties , in particular if the credit quality of the counterparty appears to exhibit a high correlation with the credit quality of the collateral submitted by the counterparty .

( ) Concerning the second ECAI assessment , credit assessment at issuance refers to the credit assessment when first issued or published by the ECAI .'

Such limits can also be applied to specific coun terparties , in particular if the credit quality of the counterparty appears to exhibit a high correlation with the credit quality of the collateral submitted by the counterparty .

Credit standards The RMBD must meet high credit standards , which are assessed through the part of the ECAF that addresses RMBDs , as set out in Section 6.3.3 .

ECAI credit assessment At least one credit assessment from an accepted ECAI ( as set out in Section 6.3.4 ) for the issue ( or , in its absence , for the issuer ) must comply with the Eurosystem 's credit quality threshold ( 25 ) ( 26 ) .

Guarantees In the absence of an ( acceptable ) ECAI credit assessment of the issuer , high credit standards can be established on the basis of guarantees provided by financially sound guarantors .

These securities comprise marketable debt issued by specific euro area issuers with a high level of credit quality .

The ECB publishes the credit quality threshold for any accepted ECAIs , as established under Section 6.3.1 ( ) .

( ) Information on the credit quality steps is published on the ECB 's website ( www.ecb.int ) .

The high credit standards for marketable assets are established on the basis of the following set of criteria

This procedure may result in a correction of the credit quality threshold applicable to the system in question .

Treated like private sector issuers or debtors 1 ) Information on the credit quality steps is published on the ECB 's website ( www.ecb.europa.eu ) .

Non marketable retail mortgage backed debt instruments The high credit standards for non marketable RMBDs must meet the Eurosystem 's credit quality threshold .

The guarantee has to be payable on first demand ( independently from the underlying credit claim ) . Guarantees given by public entities entitled to levy taxes should either be payable on first demand or otherwise provide for prompt and punctual payment following default .

These features must be maintained until the redemption of the obligation ( 36 ) , they must meet high credit standards .

The Eurosystem reserves the right to determine whether an issue , issuer , debtor or guarantor fulfils its requirements for high credit standards on the basis of any information it may consider relevant and may reject assets on such grounds .

First , each issue needs to be awarded a rating ( by a rating agency ) which indicates , in the view of the Eurosystem , that the debt instrument meets high credit standards .

A credit assessment from the system or source selected by the counterparty exists and is used to establish whether the public sector debtor or guarantor meets the credit quality threshold . ( ii ) In the absence of a credit assessment under ( i ) , an ECAI credit assessment of the debtor or guarantor is used ( 32 ) .

The Governing Council considers the programme to be appropriate , so that , from a credit risk management perspective , the marketable debt instruments issued by the Greek Government or guar anteed by the Greek Government retain a quality standard sufficient for their continued eligibility as collateral for Eurosystem monetary policy operations , irrespective of any external credit assessment .

Internal rating based ( IRB ) system a credit quality assessment source provided for in the Eurosystem credit assessment framework ( ECAF ) that comprises the internal systems of those counterparties whose credit assessments may be used by credit institutions for the determination of risk weight exposures according to the Capital Requirements Directive .

This change to the credit assessment requirement shall apply to both marketable and non marketable assets , with the exception of asset backed securities as described in Chapter 6.3 of the General Documentation , for which the requirement for high credit standards shall remain unchanged .