Data that was used in the model slightly differs from the most updated version but is still considered to be sufficiently relevant parameters. The reasons are in three folds. First of all, raw PD data is different from the most updated version within a narrow range of X%-X%. Secondly, in general, PD data in previous version is relatively more conservative than that in the latest version especially after computing final PD. Comparing final PD computed by the two versions of data as shown in the last 3 column of Table XXX demonstrates that, in most ratings, Final PD data from previous version are generally higher than that of the more recent one. As a result, even the data used is not most up-to-date, the outcomes BBB report are unlikely to understate the risk that it is exposed to. Thirdly, the final outcomes of single name credit concentration risk assessment based on the latest set of data hovers between RMXXX millions to RMXXX millions. Such range is very close to that produced by the outdated parameter which fluctuates between RMXXX millions and RMXXX millions.
It is recommended that BBB should strengthen it data gathering practice. BBB should put in place an additional process to make certain that data collected is the most updated possible. This can be done by contacting the source to confirm that respective parameters are most recent possible. This also can be carried out by visiting websites of relevant parties as the case may be.