DBRS Publishes Update to Preferred Share and Hybrid Criteria for Corporate Issuers

DBRS has today published an updated version of the criteria “Preferred Share and Hybrid Criteria for Corporate Issuers (Excluding Financial Institutions).”

While this updated criteria has not resulted in any rating changes or rating actions, there are some noteworthy changes and additions. Changes include the move from six to five categories used for assessing the equity weighting of hybrids and preferred shares, along with a more consistent stance on the cap at which hybrids and preferred shares will be treated as debt. Additions include enhanced clarity with respect to the situations that could result in preferred shares being rated above or below the standard mapping.

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