DBRS Request for Comment Ends for Obligations Backed by Insurance Policy Appendices/Exhibits to Rating US SF Transactions, ABS Surveillance & Operational Risk Assessment for ABS Servicers/Originators

DBRS, Inc. (DBRS) requested comments on February 1, 2016, relating to the new appendices/exhibits to the “Rating U.S. Structured Finance Transactions,” “DBRS Master U.S. ABS Surveillance and Operational Risk Assessment for U.S. ABS Servicers” and “Operational Risk Assessment for U.S. ABS Originators” methodologies. A new appendix to the “Rating U.S. Structured Finance Transactions” methodology titled “Rating Obligations Backed by Insurance Policy (Financial Guarantee)” as well as the related exhibits and appendix to the existing methodologies noted above (the Methodology) provide an analytical framework for reviewing obligations backed by insurance policies and/or financial guarantees in the United States.

The Methodology provides a discussion of the following:
-- Overview of key rating considerations;
-- Analysis of the credit quality of the policy provider/guaranteeing entity;
-- Review of the terms and conditions of the policy/guarantee;
-- Legal and structural considerations; and
-- Cash flow analysis.

The request for comment period has now ended and DBRS did not receive any comments on the proposed Methodology. Consequently, no changes have been made since February 1, 2016, and the Methodology is now effective for all obligations backed by insurance policies and/or financial guarantees in the United States as of March 16, 2016.

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

The current operational “Rating U.S. Structured Finance Transactions,” “Operational Risk Assessment for U.S. ABS Servicers,” “Operational Risk Assessment for U.S. ABS Originators” and “DBRS Master U.S. ABS Surveillance Methodology” can be found by clicking on the link under Related Research at the right of the screen.