Institutions must pay particular attention to the usage of rating models due to their material impacts on financial reporting, provisions, risk decisions and business decisions. Specific policies and procedures must be designed to govern overrides, including the scope of usage, the responsibilities and the conditions of output overrides.
8.6.2
At a minimum, a rating must be assigned to each obligor on a yearly cycle. In the case of exceptional circumstances related to the obligor, the industry or the wider economy, ratings may need to be assigned more frequently.
8.6.3
Consistently with Article 8.6.2, upon the roll-out of a new rating model and/or a newly recalibrated (optimised) rating model, institutions must update client ratings as soon as possible and within a period no longer than twelve (12) months. Further details are provided in the MMG on this matter.