DBRS Releases Methodology on Rating Sovereign Governments

DBRS has today released its updated methodology for rating sovereign governments.

This methodology presents the criteria on which sovereign credit ratings are based. In assigning a credit rating, DBRS incorporates all meaningful factors that could affect the risk of maintaining timely payments of interest and principal in the future.

In the case of a sovereign rating, which exclusively applies to the creditworthiness of a central government’s debt to private creditors, DBRS’s rating methodology looks at a broad array of economic, financial and political factors to assess the government’s ability and willingness to service its debt obligations. Particular emphasis is placed on rating through the cycle, and the sustainability of public finances.

This methodology release has no impact on any presently outstanding DBRS ratings.

A copy of this methodology is available by contacting us at info@dbrs.com.