DBRS Publishes Criteria for Rating Government STRIP Bonds in Canada; Ends Comment Period Process for Rating Sovereign STRIPS Criteria

DBRS has today published criteria for rating government Separate Trading of Registered Interest and Principal Securities (STRIPS) in Canada. The criteria released today provide clarity on the continuing rating coverage in Canada and are consistent with past DBRS practices in assessing ratings in this area. DBRS has determined that the release of the criteria has caused no rating changes.

DBRS assigns ratings to Canadian federal, provincial and municipal government STRIP bonds commensurate with the ratings on the underlying securities based on strict eligibility requirements defined by the central depository system and managed through CDS Clearing and Depository Services Inc.

This concludes a request for comment process initiated in May 2014, which sought public input on DBRS’s proposed approach to potentially extending its coverage of the rating of government STRIP bonds to other jurisdictions. After additional study, which included the assessment of the market reaction received by DBRS during the comment period, DBRS has made the decision to make no change to its rating coverage in this area at this time, and the request for comment has been withdrawn.

DBRS 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