PET - Plain English Taxonomy

Attribute: CS22757
Concept:
Label: Surety Bonds
Concept Guidance:
This is the value, as at the relevant date, of surety bonds which are treated as a type of direct credit substitute by the reporting party, in accordance with relevant prudential standards.A surety bond means an undertaking given by the reporting party at the request of a person (Customer) pursuant to an agreement (Surety Agreement) between the reporting party and the Customer made in the following circumstances:      (a) the Customer enters into the Surety Agreement in order to enable the Customer to meet a requirement of another agreement (Principal Agreement) between the Customer, or a person associated with the Customer, and a person other than the reporting party (Principal);      (b) under the surety bond, the reporting party undertakes to make a payment to, or perform an obligation for the benefit of, the Principal or another person nominated by the Principal (Beneficiary) in the circumstances specified in the surety bond;      (c) the surety bond is issued to the Principal or the Beneficiary in relation to or in connection with an obligation owed by the Customer, or a person associated with the Customer, to the Principal under the Principal Agreement being an obligation which:           (i) is a performance obligation or contains an element of performance on the part of the Customer, or a person associated with the Customer; and          (ii) does not relate solely to the payment of money by the Customer, or a person associated with the Customer, to the Principal; and      (d) under the Surety Agreement, the Customer is liable to the reporting party if the reporting party makes a payment or incurs a liability to the Principal or the Beneficiary under the surety bond. 
Dimensions
Dimension Member Description
(NotionalPrincipalAmount)
This dimension identifies the measurement scenario under which the reported value was calculated.
The value reported is the notional principal amount. The notional principal amount represents the face value, or gross amount, of an off-balance sheet transaction.This does not represent the fair value.
(Grade7)
This dimension categorises investments of the reporting entity according to the long-term and short-term credit rating grades of the counterparty as determined by various rating agencies.Long-term ratings. Rating Grade1: Standard & Poor's AAA; Moody's Aaa; AM Best Debt aaa; AM Best FSR A++; Fitch AAA;Rating Grade2: Standard & Poor's AA+, AA, AA-; Moody's Aa1, Aa2, Aa3; AM Best Debt aa+, aa, aa-; AM Best FSR A+; Fitch AA+, AA, AA-;Rating Grade3: Standard & Poor's A+, A, A-; Moody's A1, A2, A3; AM Best Debt a+, a, a-; AM Best FSR A, A-; Fitch A+, A, A-;Rating Grade4: Standard & Poor's BBB+, BBB, BBB-; Moody's Baa1, Baa2, Baa3; AM Best Debt bbb+, bbb, bbb-; AM Best FSR B++, B+; Fitch BBB+, BBB, BBB-;Rating Grade5: Standard & Poor's BB+, BB, BB- ; Moody's Ba1, Ba2, Ba3; AM Best Debt bb+, bb, bb-; AM Best FSR B, B-; Fitch BB+, BB, BB-;Rating Grade6: Standard & Poor's B+, B, B- ; Moody's B1, B2, B3; AM Best Debt b+, b, b-; AM Best FSR C++, C+, C, C-; Fitch B+, B, B-;Rating Grade7: Standard & Poor's Below B-; Moody's Below B3; AM Best Debt Below b-; AM Best FSR Below C-; Fitch CCC or Below;Short-term ratings.Rating Grade1: Standard & Poor's A+, AM Best AMB-1+; Fitch F1+;Rating Grade2: Standard & Poor's A1; Moody's P1; AM Best AMB-1; Fitch F1;Rating Grade3: Standard & Poor's A2; Moody's P2; AM Best AMB-2; Fitch F2;Rating Grade4: Standard & Poor's A3; Moody's P3; AM Best AMB-3; Fitch F3;Rating Grade6: Standard & Poor's B; Moody's NP Vulnerable; AM Best AMB-4; Fitch B;Rating Grade7: Standard & Poor's C; Moody's NP Currently Vulnerable; Fitch C;
The counterparty in relation to the reported information has a rating grade of 7.