DBRS Publishes Criteria for Guarantees and Other Forms of Explicit Support

DBRS has today published a criteria that outlines its approach to guarantees and other forms of explicit support when assigning a credit rating. It is a common occurrence for a parent company with a favourable credit rating to give some form of explicit support to a weaker subsidiary or affiliated company. As the criteria states, there are generally three types of explicit support that DBRS will consider: guarantees, keepwell agreements (also referred to as credit support agreements) and comfort letters. DBRS has taken no rating actions as a result of this criteria.

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