DBRS Releases Updated Methodology for Rating Canadian RMBS and HELOC Transactions

DBRS Limited (DBRS) has today released the methodology “Rating Canadian Residential Mortgage-Backed Securities (RMBS) and Home Equity Line of Credit (HELOC) Transactions,” which updates and supersedes the respective versions previously published. Due to the similar asset nature, credit factors and analytical approach, the previously separate methodology “Rating Canadian Home Equity Lines of Credit (HELOCs)” is now incorporated in this release. 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 or assessed at AAA or equivalent.

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 determined that the updated methodology has no rating impact on existing Canadian structured finance ratings.