DBRS Publishes Updated Mining Methodology

DBRS has today published an updated corporate finance methodology, “Rating Companies in the Mining Industry.” No ratings have changed as a result of this update.

The methodology has been re-written into DBRS’s new corporate finance methodology format. While most of the other changes to the methodology merely provide additional clarification, material changes have been made to the primary financial risk rating (FRR) metrics. These primary FRR metrics have generally been tightened to better reflect the stronger financial position that mining companies need in the face of volatile mineral commodity prices. DBRS also comments that business risk rating factors have a higher weight than FRR metrics in determining final ratings in the mining sector compared with other corporate finance sectors because of the mining sector’s volatility.

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

DBRS’s methodologies and criteria are available at www.dbrs.com or by contacting us at info@dbrs.com.