Recognition of TBW's Ratings for LAF Purpose

The Hong Kong Monetary Authority (HKMA) has announced today that the ratings of Thomson BankWatch (TBW) are recognized by the HKMA in assessing the eligibility of HK$ denominated debt issues as Repo securities for discounting under Liquidity Adjustment Facility (LAF) with immediate effect.

The minimum requirements in respect of the debt ratings assigned by TBW for LAF purpose for the time being are A+ for bank issues and AA- for non-bank issues. The HKMA reserves the right to make adjustments to these minimum rating requirements from time to time.

Previously only the ratings of Moody, S&P, IBCA and JBRI were recognized for LAF purpose. TBW is a New York based credit rating agency set up in 1974 and it is the fifth credit rating agency whose ratings are recognized by the HKMA for LAF purpose.

Hong Kong Monetary Authority
15 September 1997