DBRS Publishes Updated Legal Criteria for U.S. Structured Finance Transactions

DBRS has today published an updated Legal Criteria for U.S. Structured Finance Transactions. The methodology outlines the key legal considerations analyzed when reviewing structured finance transactions, and include the following:

-- Defining securitization
-- Bankruptcy Risk
-- Special Purpose Entities
-- Trust Indenture and Indenture Trustee
-- Credit Enhancement
-- Servicing and Collection Accounts

Changes to the methodology mainly relate to use of independent directors, eligible accounts, value of “flip clauses,” as well as minor language revisions. The update also seeks to clarify the consistency in DBRS expectations across methodologies for eligible investments and counterparty risk.

This methodology, effective as of the date of this press release, supersedes any previous methodologies. DBRS does not deem any of the changes to the updated methodology to be material, and therefore no ratings will be affected.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.