DBRS Publishes Updated Methodologies for Canadian Structured Finance

DBRS has today released updated versions of its “Legal Criteria for Canadian Structured Finance” (the CSF Legal Criteria), “Rating Canadian ABCP” (the Canadian ABCP Criteria) and the “Derivatives Criteria for Canadian Structured Finance” (the CSF Derivatives Criteria), each of which supersedes the version published in September 2013. The CSF Legal Criteria is applied to Canadian structured finance transactions in conjunction with the relevant asset-class methodology. The Canadian ABCP Criteria is applied to Canadian ABCP transactions in conjunction with the relevant asset-class methodology and the CSF Legal Criteria. The CSF Derivatives Criteria is applied to Canadian structured finance and structured credit transactions where derivatives arrangements are relevant or necessary for purposes of DBRS’s ratings analysis.

Publication of the updated methodologies 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), as applicable.

The changes made to the updated methodologies are generally editorial in nature and are intended to provide further clarity and increased transparency into DBRS’s rating approach.

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

If you have any questions regarding the updated methodologies, please feel free to contact Jamie Feehely, Debbie Caruso, Banu Ozlem Unal, Kevin Chiang or Tim O’Neil.