DBRS Releases Updated Criteria: Rating Bank Capital Securities; No Rating Changes

DBRS has today published an updated Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred and Contingent Capital Securities that is effective as of today. This methodology supersedes the existing methodology published on 3 February 2015.

The changes are largely for clarification and to update the language to reflect the evolving regulatory environment. 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. This Criteria focuses on bank capital securities and does not address the role of senior debt that can be bailed-in when a bank is under the control of the relevant authorities that are conducting resolution and recovery efforts. The impact of these new requirements and the associated resolution schemes is to be addressed in future refinements of the banking methodology as there is greater clarity on the relevant legal and resolution frameworks across countries.

Notwithstanding today’s release, DBRS continues to monitor the effectiveness of this criteria and other banking related methodology in light of the ongoing evolution of banking legislation, regulation and supervision globally. DBRS will continue to strive to provide additional clarity and implement new considerations in its methodology updates as appropriate on a timely basis.

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

DBRS’s methodologies and criteria are available by contacting us at info@dbrs.com.