In determining the risk-adjusted value of the on-balance-sheet credit equivalent amounts of the contingent guarantee contracts, the risk weights are determined by the credit rating of the underlying counterparty of the off-balance-sheet activity.

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The risk weights for determining the risk-adjusted value of on-balance-sheet credit equivalent amounts of contingent guarantee contracts are indeed determined by the credit rating of the underlying counterparty of the off-balance-sheet activity.

In Determining the Risk-Adjusted Value of the On-Balance-Sheet Credit Equivalent