DBRS Publishes Methodology: Rating U.S. Timeshare Loan Securitizations

DBRS, Inc. (DBRS) has today published its rating methodology for U.S. timeshare loan asset-backed transactions. The methodology outlines DBRS approach for reviewing timeshare loan transactions with regard to the following key analytical considerations:

• Quality of management and financial condition of the sponsoring timeshare company and its affiliated companies;
• Operational capabilities;
• Quality of the resort properties and their amenities;
• Collateral quality of the proposed timeshare loan pool and historical performance of a sponsor’s timeshare loan portfolio;
• Transaction capital structure and priority of payments; and
• Legal structure and opinions.

This methodology is new and is effective as of May 22, 2012.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.