DBRS Releases Updated Global Methodology for Rating Banks & Banking Organisations; No Rating Changes

DBRS has today published an updated version of the Global Methodology for Rating Banks and Banking Organisations that is effective as of today. The changes are largely for clarification and to update the language to reflect the evolving regulatory environment. There are no material changes from the last published version in terms of the core approach used by DBRS to assess banks. Accordingly, this update has not resulted in any rating changes or other rating actions. Given the limited changes, this update was not published with a request for comment.

Notwithstanding today’s release, DBRS continues to monitor the effectiveness of this methodology and other banking related criteria in light of the ongoing evolution in the regulation of banks especially with regard to the potential for senior bondholders to have increased protection from more junior debt instruments outside of a liquidation scenario. For example, as part of its ongoing review of systemic support assumptions at European banks, initiated on 20 May 2015, DBRS is also considering how to differentiate between the varying levels of protection provided to senior bondholders by loss absorbing subordinated debt and capital. Conclusions will be incorporated into future versions of the Global Banking Methodology.

DBRS will also continue to strive to add additional clarity and implement new considerations in its methodology updates, as appropriate, on a timely basis.

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

DBRS's rating definitions and the terms of use of such ratings are available at www.dbrs.com.

For further information, please contact:

Roger Lister
Managing Director, Chief Credit Officer
Financial Institutions and Sovereign Group
+1 212 806 3231
rlister@dbrs.com

Alan G. Reid
Group Managing Director
Financial Institutions and Sovereign Group
+1 212 806 3232
areid@dbrs.com