DBRS Releases Updated Methodology for Rating Canadian Credit Card Securitizations

DBRS Limited (DBRS) has today released an updated version of its methodology DBRS Criteria for Canadian Credit Card Securitization, which supersedes the version published in April 2011. Due to the similar asset nature and credit factors, the appendix for Personal Lines of Credit was incorporated and removed from the methodology Rating Canadian Structured Finance Transactions. 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 version are generally editorial in nature. 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.