• Regulated Lenders Apply Credit Risk Ratings or Loan Grades to Commercial Loans as Part of a Credit Risk Management Framework
• Loans With Acceptable Repayment Risk are Rated as Pass, and Other Ratings are Made for Loans that Exhibit Potential Weaknesses, and Those with Well-Defined Weaknesses, or Worse
• Criticized and Classified Risk Ratings Through Continuous Monitoring
• Special Mention (SM)
• Substandard (SUB)
• Doubtful
• Loss
• IMPORTANCE TO YOU - Stakeholders sleep better at night when their loans are risk rated as Pass. Creditors are expected to assign both accurate and timely risk ratings. When your loan is risk rated Special Mention. When your loan is risk rated Substandard. When your loan is risk rated Doubtful. When you loan is risk rated Loss. Understand what these credit risk ratings really mean