DBRS Publishes Canadian ABCP Methodology

DBRS has today published Rating Canadian ABCP, a comprehensive overview of the DBRS approach to rating Canadian asset-backed commercial paper (ABCP). The methodology and criteria described applies to all Canadian ABCP conduits that have a DBRS rating.

From sponsor and seller requirements, risk analysis conducted at the conduit, series and transaction level, through to surveillance, all stages of the rating process are addressed. Of particular note is the DBRS “weakest link” approach whereby the rating of ABCP generally reflects the credit quality of the weakest underlying asset supporting that ABCP. In this way a DBRS ABCP rating is truly “all about the assets.”

DBRS invites market participants to submit written comments in respect of the document released today to abcpcomments@dbrs.com by October 30, 2009. DBRS will review and consider all written submissions.

The methodology providing DBRS's processes and criteria is available by clicking on the link below or contacting us at info@dbrs.com.