Amendment x6 Mfichwel Theurer. Sylvie Gaulawd. Petr Jeol Proposal for a regulation 1 point 7 Requlation (EU) No '575/2019 Article 243 paragraph I point aa (new) Text proposed by the Commission ‘Maximum risk weights for STS ABCP (art. 243 par. 1 (a) CRR-R) Article 243 par. 1 (a) CRR-R requires for ABCP transactions that the isk ofthe secured exposures under the Standardised Approach shall not be higher than 100 percert for any non-retal exposure, ‘together end should not be edopted. At presert, a risk weight f 100 percent would meen that obligors with an extemal reting ofS or worse (according tothe rating scale of SAP) would have to be excluded from secuntsaton. The resutt would be that many corporate SME exposures that are successfully securtised today would have to be excluded. ‘This probiem Is likely to compound ata later stage. Based onthe recert consutative paper by the Basel Comittee of December 2014 on the revision ofthe Standardised Approach to credit rsk, for instance, all corporate SNES with revenues less than Sm. EUR and an eguity rato of less then 33% mould have tobe ‘excluded from STS securtsations irrespective whether there is a significant single risk or not. Article 12 par. 5 STS-R already requires that the exposure must be originated in the ordinary course of the selle’s business pursuant to underwriting standards thet ae not less stringent than these the seller ‘applies to origination of similar exposures not secured. In addition, according to Artide 8 par. 7 STS-R excludes cresit-mpaired exposures. Thus, we con’ see the need to exclude further exposures. In recital 14 the EU Commission corectly points out that STS securisations are neither free of risk, nor do they incicate anything about the credit quality ofthe underlying exposures. Instead the STS label ‘should be understood to indicate that @ prudent and diligent investor willbe able to analyse the risk invol- ved in the securtisation.