Off-balance-sheet commitments include items such as pending/ threatened litigation, certain contingencies, special purpose entities, and joint ventures.
Our methodology currently does not capture off-balance sheet commitments as we make the deliberate decision to standardize inputs for all ratings to the contents of the three financial statements: balance sheet, income statement and cash flow statement. However, as the rating decreases we recommend looking to see if there are significant off-balance sheet items that may further impact financial health.