DBRS Publishes Updated Canadian Structured Finance Surveillance Methodologies

DBRS has today published updated versions of two of its Canadian structured finance surveillance methodologies.

The updated version of “Canadian Structured Finance Surveillance Methodology” contains minor improvements for clarity and content. The methodology provides a general guideline for the surveillance of Canadian structured finance securities and is complementary to DBRS’s asset-specific rating approaches.

The updated version of “Canadian Surveillance Methodology for CDOs of Large Corporate Credit” explains DBRS’s ongoing monitoring process for collateralized debt obligations (CDOs) and the analyses performed in order to determine whether rating actions are required. The methodology is applied in conjunction with DBRS’s “Rating Methodology for CLOs and CDOs of Large Corporate Credit” and “Cash Flow Assumptions for Corporate Credit Securitizations”, both published in February 2012. Changes to this methodology are largely minor and intended to provide further clarity and increased transparency into DBRS’s approach to monitoring Canadian CDO transactions.

DBRS does not view the updates to either methodology as significant and has determined that no rating action is warranted upon the release of these updated methodologies.