DBRS Publishes Methodology for Rating Canadian Structured Credit Transactions

DBRS has today published its methodology for rating Canadian structured credit products.

With today’s release, DBRS has brought together into one document its rating approach to all elements of a Canadian structured credit transaction, including credit risk, the risk of a leveraged transaction facing a collateral call and counterparty risk. These elements had previously been addressed in a number of DBRS publications. DBRS aims to provide greater transparency to the ratings process by addressing these factors in a comprehensive manner.

“DBRS expects structured credit issuance and innovation to remain subdued in the near term,” says Andrew Fitzpatrick, Assistant Vice President, Canadian Structured Finance. “However, as new products are presented for rating scrutiny, DBRS will seek appropriate methods to assess the risks that will be borne by holders of these new products.”