GEMs Master Scale

GEMs reference probabilities of default (PD) curve known as the GEMs master scale The GEMs master scale is the common language regarding the creditworthiness of GEMs member institutions’ lending counterparties (borrowers): it is a 1-year Probability of Default (PD) rating scale built partially based on GEMs observed default rates.

GEMs Rating	Probability of Default (PD)	PD - Range
Gi1	0.0001	[0.0000 - 0.0004[
Gi2	0.0006	[0.0004 - 0.0010[
Gi3	0.0014	[0.0010 - 0.0022[
Gi4	0.0030	[0.0022 - 0.0044[
Gi5	0.0058	[0.0044 - 0.0084[
Gi6	0.0109	[0.0084 - 0.0182[
Gi7	0.0256	[0.0182 - 0.0549[
Gi8	0.0842	[0.0549 - 0.1501[
Gi9	0.2161	[0.1501 - 0.3333[
Gi10	0.4506	[0.3333 - 0.6337[
Gs1	0.8169	[0.6337 - 1.0807[
Gs2	1.3445	[1.0807 - 1.7036[
Gs3	2.0626	[1.7036 - 2.4029[
Gs4	2.7432	[2.4029 - 3.1136[
Gs5	3.4840	[3.1136 - 4.0461[
Gs6	4.6082	[4.0461 - 5.8043[
Gs7	7.0004	[5.8043 - 8.2302[
Gs8	9.4600	[8.2302 - 12.4600[
Gs9	15.4600	[12.4600 - 20.4600[
Gs10	25.4600	[20.4600 - 100.0000[
D	100.00	100.00

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