DBRS Publishes Its Methodology for Mapping Financial Institution Ratings to DBRS Ratings for Structured Credit Transactions

DBRS has today published its methodology for mapping internal financial institution ratings to DBRS ratings. “Financial institutions are increasingly enhancing internal validations of their ratings systems based on key similarities to the performance of public ratings. Our ability to assist clients in leveraging these efforts provides a more granular approach to reserving capital on portfolios of assets that are increasingly being managed on balance sheet,” says Darren Davies, Managing Director of U.S. Structured Credit.

The role of DBRS as a credit rating agency is to provide a third-party opinion as to the likelihood of the repayment of principal and interest on the obligations being rated (equity tranches are typically unrated). Although the current state of the securitization market continues to remain in flux, this methodology aims to provide appropriate levels of flexibility, while providing a rigorous qualitative and quantitative framework that is both consistent and transparent.

The methodology providing DBRS’s processes and criteria is available by contacting us at info@dbrs.com.