Brown Dog Ltd brews and distributes a range of Cider drinks based on pears, apples, pineapples and mangos. The company currently has a range of assets that are exposed to credit risks. Assets EAD ($) Credit Rating Security Accounts receivables 15,000,000.00 BB Unsecured Investments 16,000,000.00 AA Unsecured Partially Intercompany Loans A 25,000,000.00 B secured Partially Intercompany Loans B (undrawn) 3,000,000.00 B Secured Partially Derivative contracts 15,000,000.00 AA secured Total Value 74,000,000.00 To assess both the expected and unexpected losses associated with credit risk you must apply the following Probability of Default (PD) and Loss Given Default (LGD) measures. Rating Probability of Default AAA 0.005% AA 0.02% A 0.05% BBB 0.20% BB 1. 10% B 6.00% CCC or lower 25.00% Security Loss Given Default Fully Secured 15% Partly Secured 35% Unsecured 55%