The LME Clear credit risk assessment framework consists of three complimentary pillars in assessing and ensuring credit ratings remain appropriate:
- scorecard credit rating
- credit analyst review
- early warning system.
The LME Clear credit risk assessment framework assesses the credit quality and assigns an internal credit rating to all the LME Clear counterparties. The application of these internal credit ratings forms an integral part to LME Clear's risk framework and ensures LME Clear's risks are within the desired appetite and thresholds.