DBRS Publishes Methodology for Rating Securitizations Backed by Marine Container Assets

DBRS, Inc. (DBRS) has today published its methodology (the Methodology) for rating asset-backed securitization (ABS) transactions backed by marine containers and associated leases. The Methodology provides an analytical framework for reviewing marine container securitizations, which includes:

-- Quality of management, operational capabilities and financial condition of the sponsoring container leasing company;
-- Composition of the collateral assets by asset type, lease term and lessee;
-- Historical performance of a sponsor's managed container fleet with respect to utilization and per diem rates, residual value realizations, direct operating expenses as well as lessee defaults and recoveries;
-- Competitive landscape including projected rate of growth for containerized trade and estimated container supply by key asset types in the short to medium term;
-- Transaction capital structure and priority of payments; and
-- Legal structure and opinions.

DBRS has also published its new stressed forward interest rate curves per its new “Unified Interest Rate Model for Rating Marine Container ABS Transactions” that sets forth a consistent platform for the application of interest rate stresses applied across all marine container securitizations’ ratings.

This Methodology is effective as of the date of its publication and supersedes any previous methodologies. While DBRS considers this update to be a material change, it remains consistent with the methods generally used by DBRS to assess the ABS secured by commercial exposures. Accordingly, the release of the Methodology will not result in any rating changes or other rating actions on outstanding transactions.

Notes:
The methodology providing DBRS’s processes and criteria is available by contacting us at info@dbrs.com.

For more information, visit www.dbrs.com or contact us at info@dbrs.com.