DBRS Publishes Updated Methodology for Asset Managers

DBRS has today published an updated version of the methodology that was previously entitled “Rating Canadian Mutual Fund Companies.” The new updated version has (a) an expanded scope that covers companies that manage non-mutual fund assets and institutional investment management and (b) an expanded focus that now captures DBRS’s approach for multiple jurisdictions.

Given these changes, the updated methodology has appropriately been retitled as “Rating Asset Management Companies.” Secondly, the updated methodology no longer utilizes an industry Business Risk Rating as a key element. In the context of the broader jurisdictional scope of the updated methodology, this approach was no longer viewed as appropriate. Lastly, the ratio “cash flow / commissions” has been removed from the table of key metrics.

Changes with this update were largely related to the aforementioned expanded applications and other minor improvements for clarity and content. None of the latter resulted in any change in DBRS’s approach or opinion on the related industries and as such, the update of this methodology has not resulted in any rating changes or rating actions.

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