The starting point for our ratings on Standard Chartered is its 'bbb+' anchor, which is partly based on our view of the weighted-average economic risks across the countries in which it operates. We then adjust for four institution-specific factors, as detailed below, to determine the unsupported GCP, currently 'a-'. Finally, the ratings reflect our view of the group's ALAC buffer, for which we add one notch. SCB's anchor of 'bbb+' draws on our banking industry country risk assessment methodology and our view of the economic and industry risks in the countries where the bank operates. The economic risk score of '4' is based on the weighted average of SCB's private-sector loans to nonbanks in each country in which it operates.
