DBRS Presentations Provide Overview of Canadian Credit Markets

DBRS has published the presentation slides for the Toronto credit luncheon seminar to be held today at 12:00 p.m. ET at the King Edward Hotel.

The seminar, hosted by DBRS Co-Presidents Peter Bethlenfalvy and Huston Loke, offers DBRS’s view of the past year in Canada and where the country stands, going into 2010.

“One of our key findings is that DBRS believes that the economic recovery will be sawtoothed,” says Mr. Bethlenfalvy. “Inflation will be a problem in the longer term, not the near term.”

As for the structured finance market in Canada, Mr. Loke points out that while the recession and credit crisis have had an impact on all structured finance assets, including corporate credit, autos, cards and mortgages, Canadian assets have outperformed U.S. assets.

“Ratings have been very stable in the ‘traditional asset’ sectors of structured finance,” says Mr. Loke. “Certain sectors have been affected more than others, in accordance with the strength of the security pledged.”

Other findings from the seminar include the following:

– In the long term, Canada will benefit based on its commodities, lower leverage and sound financial system.
– In the short term, weaker credits have been culled and liquidity has returned.

A copy of the presentations is available by contacting us at info@dbrs.com.