DBRS Releases Updated Methodology for Rating Canadian Auto Retail Loan and Lease Securitizations

DBRS Limited (DBRS) has today released an updated version of its “Rating Canadian Auto Retail Loan and Lease Securitizations,” which supersedes the version published in January 2012. “Rating Canadian Auto Retail Loan and Lease Securitizations” is applied to Canadian structured finance transactions in conjunction with “Legal Criteria for Canadian Structured Finance” and “Rating Canadian ABCP.” Publication of the updated methodology is part of DBRS’s ongoing efforts to provide greater transparency to the ratings process by outlining the various factors that DBRS expects to see in transaction documentation, particularly for transactions rated AAA (sf) or R-1 (high) (sf).

Apart from merging the previously separate methodologies, the changes made to the updated “Rating Canadian Auto Retail Loan and Lease Securitizations” are generally editorial in nature, including clarification of certain criteria and the removal of a couple of sections that are more appropriately addressed in other Canadian Structured Finance criteria or methodologies.

DBRS does not view the updates as significant and has determined that the updated methodology will not result in any impact on existing Canadian structured finance ratings.

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