Full text of MORGAN STANLEY & CO INTERNATIONAL PLC's X-17A-5 filed 2023-04-25 (period 2022-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ #### **MORGAN STANLEY** & **CO. INTERNATIONAL pie:** **NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2022** The impact of master netting arrangements and similar agreements on the Group's ability to offset financial assets and financial liabilities is disclosed in note 29. Exposure to Credit Risk by Internal Rating Grades Internal credit ratings are derived using methodologies generally consistent with those used by external agencies: Investment grade: AAA- BBB Non-investment grade: BB - CCC Default: D The table below presents gross carrying/ nominal amount by internal rating grade. All exposures subject to ECL are Stage 1, unless otherwise shown. | | Group | | | | | | | | |-----------------------------------------------------------------|------------------|--------|---------|--------|-------------------------------|----------------|---------|------------------| | | Investment Grade | | | | | | | | | | | | | | Non | | | | | 31 December 2022 | AAA | AA | A | BBB | Investment Unrated(1<br>Grade | ) /<br>Default | | Total Net of ECL | | in\$ millions | | | | | | | | | | Subject to ECL: | | | | | | | | | | Cash and short term deposit | | | | | | | | | | Stage 1 | 212 | 4,869 | 12,600 | 1,019 | 54 | | 18,754 | 18,754 | | Stage 3 | | | | | | 96 | 96 | | | Loans and advances | | | | | | | | | | Stage 1 | | | 63 | | | | 63 | 63 | | Trade and other receivables | | | | | | | | | | Stage 1 | 1,985 | 10,523 | 44,737 | 13,657 | 6,943 | 2,300 | 80,145 | 80,145 | | Stage 3 | 4 | 7 | 4 | 4 | 1 | 56 | 76 | 27 | | | 2,201 | 15,399 | 57,404 | 14,680 | 6,998 | 2,452 | 99,134 | 98,989 | | Not subject to ECL: | | | | | | | | | | Trading financial assets -<br>derivatives | 4,700 | 18,765 | 155,134 | 57,802 | 14,629 | 46 | 251,076 | 251,076 | | Secured financing | 712 | 28,513 | 81,530 | 15,278 | 3,732 | 14 | 129,779 | 129,779 | | Trade and other receivables | 733 | | 561 | | 4 | | 1,298 | 1,298 | | | 6,145 | 47,278 | 237,225 | 73,080 | 18,365 | 60 | 382,153 | 382,153 | | Unrecognised financial<br>instruments not subject to<br>ECL: | | | | | | | | | | Unsettled securities<br>purchased under<br>agreements to resell | | 24,849 | 20,732 | 7,602 | 1,382 | 63 | 54,628 | 54,628 | | Loan commitments | | | | | 14 | | 15 | 15 | | | | 24,850 | 20,732 | 7,602 | 1,396 | 63 | 54,643 | 54,643 | (1) For the unrated trade receivables, a lifetime EGL is calculated without considering whether SICR has occurred. The Cash and short term…Read the full text as markdown