DBRS Publishes Methodology for Rating U.S. Structured Finance Transactions and Consumer Loan Appendix

DBRS has today published a methodology entitled “Rating U.S. Structured Finance Transactions.” The methodology provides a general guideline for the analysis of structured finance transactions in the United States and is complementary to, and may be used in conjunction with, the DBRS asset-specific rating approaches.

The key analytical considerations evaluated by DBRS generally include the following:

-- Operational risk review which evaluates the quality of management, financial condition, and operational capabilities of the sponsoring company;
-- Collateral composition and historical performance;
-- Transaction capital structure and priority of payments; and
-- Legal structure and opinions.

DBRS has also published an appendix for rating U.S. Consumer Loan ABS transactions to the “Rating U.S. Structured Finance Transactions” methodology. The key analytical considerations discussed include performance metrics and cash flow analysis.

Further, DBRS has published its new stressed forward interest rate curves per its new “Unified Interest Rate Model for U.S. Structured Finance Transactions” that sets forth a consistent platform for the application of interest rate stresses applied across all U.S. structured finance ratings.

This methodology, effective as of the date of this press release, supersedes any previous methodologies. Accordingly, this methodology release does not result in any rating changes or other rating actions.

DBRS criteria and methodologies are publicly available on its website. http://www.dbrs.com/methodologies

For more information on ratings for equipment lease and loan securitizations, visit www.dbrs.com or contact us at info@dbrs.com.