Scope Ratings today released its finalised bank rating methodology update for 2020 (an early draft of this report was published in March, with a call for comments by 24 April). Scope Ratings also released its capital securities methodology. Aside from editorial changes or further clarifications, the Bank rating methodology updated include the following main changes, aside editorial changes or further clarifications:

• Reorganization of content, with a clearer separation of the rating framework, the analytical principles behind the methodological approach and methodology roadmap and key elements of the analysis
• Clarification of the notching of debt instruments according to the priority of claims in jurisdictions with contractual and structural subordination
• Several clarifications on assessment of operating environment
• Clarification on risk provisioning under IFRS9

The methodology update does not affect any outstanding ratings as the proposed changes are minor.

The updated Bank Rating Methodology can be downloaded here and the updated Capital Securities methodology can be downloaded here.