Give credit where credit's due (TT Nov01 p21-23)

The actuarial and accounting worlds are alive with FRS17 – the new accounting standard for pensions. Dove-tailing with the anticipated abolition of the minimum funding requirement (MFR) announced in the last budget together with the Treasury’s latest proposals, the impact on balance sheets and the sterling capital markets is being hotly debated.

Although the crunch date for compliance is mid-2003, many leading companies are looking to become compliant early. However, there is a notable silence from the credit rating agencies over the reforms and this article considers whether a new approach should be adopted by the rating agencies to bring consistency with their approach to insurance companies and other collateralised obligations.