DBRS Publishes Updated Criteria on Rating Canadian ABCP

DBRS has today published an updated version of its methodology for rating Canadian asset-backed commercial paper (ABCP), which supersedes the version dated September 2012. The publication of this updated methodology is part of DBRS’s continued effort to provide market participants with better insight into the rationale behind DBRS’s rating opinions by outlining the significant elements DBRS expects to see in Canadian structured finance structures and transactions backing Canadian ABCP rated R-1 (high) (sf).

Changes to the methodology are mostly editorial in nature and are intended to provide further clarity and increased transparency into DBRS’s approach to rating Canadian ABCP, as well as consistency between related methodologies.

Pursuant to the updated version, DBRS clarified its expectation that any changes and extensions to commitments made by ABCP conduits to asset sellers are subject to satisfaction of the Rating Agency Condition (as defined in DBRS’s “Legal Criteria for Structured Finance” methodology).

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

The publication providing DBRS's processes and criteria is available by contacting us at info@dbrs.com.