Industrial Bank Launches Comprehensive Redevelopment of Corporate Credit Rating Model

Industrial Bank is undertaking a comprehensive redevelopment of its corporate credit risk assessment model for general enterprises. This initiative aims to reflect recent default data and economic conditions by reviewing the long-term average default rates and the credit rating calculation system. The bank will revise its credit rating model, which includes GAAP companies subject to external audits as well as IFRS, GAAP, and non-audited companies. The new model will incorporate financial models, non-financial models, and representative models. The long-term average default rate serves as a benchmark for assessing risk levels by credit rating, forming the foundation of the bank's internal credit assessment model. Additionally, the impact of the new model on the bank's soundness will also be analyzed. Industrial Bank will compare the differences between existing ratings and those from the new model, examining changes in risk-weighted assets, BIS ratios, and loan loss provisions. Non-financial assessments are a key element in evaluating corporate risk, and objective application methods will be reviewed. The system for verification and monitoring after credit rating calculation will also be included. Industrial Bank plans to improve its credit assessment system by reflecting recent data and economic conditions.