DBRS Publishes Updated Rating Canadian Covered Bonds Methodology

DBRS Limited (DBRS) has today released an updated version of the “Rating Canadian Covered Bonds” methodology. The DBRS rating approach to Canadian covered bonds remains unchanged and based on three building blocks: the issuer rating, the legal and structuring framework and the cover pool credit assessment.

The changes made to the updated methodology are generally editorial in nature and are intended to provide further clarity and increased transparency into DBRS’s rating approach.

DBRS does not view the updates as material and has determined that the updated methodology will not result in any impact on existing Canadian covered bond ratings.

The updated methodology supersedes the version previously published in April 2014 and is applied in conjunction with DBRS’s “Legal Criteria for Canadian Structure Finance” and “Derivatives Criteria for Canadian Structured Finance.”

Publication of the updated methodology is part of DBRS’s ongoing efforts to provide greater transparency to the ratings process by outlining the various factors that DBRS considers when evaluating covered bond transactions.

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