DBRS Updates Operational Risk Sections for ABS Methodologies

DBRS, Inc. (DBRS) has today updated the following methodologies:

-- Rating U.S. Auto Fleet Lease Securitizations
-- Rating U.S. Auto Lease Securitizations
-- Rating U.S. Equipment Lease and Loan Securitizations
-- Rating U.S. Federal Family Education Loan Program Securitizations
-- Rating U.S. Private Student Loan Securitizations
-- Rating U.S. Retail Auto Loan Securitizations
-- Rating U.S. Structured Finance Transactions
-- Rating U.S. Timeshare Loan Securitizations
-- U.S. Credit Card Asset-Backed Securities

These methodologies, effective as of the date of this press release, supersede any previously available methodologies.

In this update, DBRS moved the originator and servicer review sections to their stand-alone methodologies titled “Operational Risk Assessment for U.S. ABS Originators” and “Operational Risk Assessment for U.S. ABS Servicers,” respectively. The two operational risk assessment methodologies are published as a result of DBRS’s update of its Internal Assessments Global Policy.

DBRS has also published two additional appendices to the “Rating U.S. Structured Finance Transactions” methodology: (1) U.S. TV Programming Licensing Rights; and (2) U.S. Insurance Premium Finance. The key analytical considerations for rating U.S. TV Programming Licensing Rights ABS transactions include:

-- Collateral performance metrics.
-- Credit quality of the collateral.
-- Transaction structure.
-- Forms of credit enhancement.
-- Operational risk.
-- Cash flow assumptions.

The appendix for rating U.S. Insurance Premium Finance ABS transactions supersedes the previous methodology entitled “Rating U.S. Insurance Premium Finance Securitizations.” The key analytical considerations for rating U.S. Insurance Premium Finance ABS transactions include:

-- Collateral performance metrics.
-- Credit quality of the carriers.
-- Transaction structure.
-- Forms of credit enhancement.
-- Operational risk.
-- Cash flow assumptions.

Other than (1) the addition of standardized language related to the scope and limitations of methodologies for certain methodologies listed above and (2) the addition of the U.S. TV Programming Licensing Rights and U.S. Insurance Premium Finance appendices to the “Rating U.S. Structured Finance Transactions” methodology, no other changes were made to the existing methodologies.

DBRS does not deem the methodology updates to be material and will not take any rating actions on outstanding ratings as a result of these updates.

The full methodologies providing additional analytical details are publicly available on www.dbrs.com under Methodologies or by contacting us at info@dbrs.com.

The Internal Assessments Global Policy is also publicly available on www.dbrs.com under Rating Policies.