Would anyone with a 1-10 commercial loan rating system care to share their descriptions?

I'm trying to convert a 1-9 system to a 1-10 system to add in an extra category between pass and "special mention" (an additional "watch" rating) and am getting writers block. Any help would be appreciated. Thanks,

Something like:

Pass Credit - Pass Watch Loans

Loans in this category are made up of "Pass Credits" with no immediate problems and/or weakness present, but warrant more than the normal level of supervision. These credits have been identified as "Pass Watch" due to adverse effects that have affected or could affect the borrower's cash flow, financial condition, ability to continue operating profitably or to find an alternative source of financing. This rating may result from improvements in a formerly criticized or classified credit, which still warrants significant supervision. A loan may also be placed in this category due to:
• New or untested management
• Start-up or fairly new operations
• Highly leveraged financial condition
• Loan documentation deficiencies

Here is one that was in between pass and special mention - could go either way:

A credit rated 6 has exposure worthy of comment. It has all the characteristics of a satisfactory asset but warrants more than the normal level of supervision, and may warrant formal reporting to management due to:

· aspects of the underwriting that do not conform to policy; or
· adverse events that have affected or could affect the obligor's cash flow, financial posture, or ability to continue operating profitably, provided, however, that the events or circumstances prompting this rating do not constitute an undue or unwarranted credit risk.

Why would you have more categories than the regulators? You are only setting yourself up for an argument if a 4 is really a pass or special mention, etc.

Thanks for the verbiage, that exactly what I was looking for.

I'm going to a 1-10 system and creating an extra "watch" category to potentially preclude some loans from going substandard that don't exactly fit the definition....1-5, pass 6(watch), 7 special mention (still a watch rating) 8 substandard, 9 doubtful, 10 loss. A few of the large national banks use a 1-10 rating system which works well. At my last employer, we switched from a 1-5 system, which was woefully inadequate.