DBRS Publishes Insurance Premium Loans Appendix to Rating Canadian Structured Finance Transactions Methodology

DBRS has today published a new appendix to its methodology “Rating Canadian Structured Finance Transactions,” applying to transactions backed by insurance premium loans. The key analytical considerations include collateral performance metrics, insurance carrier risk and cash flow analysis.

The appendix is being published following the conclusion of the Request for Comment period on October 25, 2015. No comments were received. Some sentences were revised clarifying the finance company’s claim priority to the unearned premium following a carrier insolvency and the amount of support funds available.

The new appendix is not materially different from the U.S. Insurance Premium Finance appendix to the “Rating U.S. Structured Finance Transactions” methodology published in December 2014.

DBRS criteria and methodologies are publicly available on its website www.dbrs.com under Methodologies.