DBRS Request for Comment Ends for US Energy Savings Performance Contract Appendices/Exhibits to Rating US SF Transactions, ABS Surveillance & Operational Risk Assessment for ABS Servicers/Originators

DBRS, Inc. (DBRS) has today released its Methodology for reviewing U.S. energy savings performance contracts (ESPCs) asset-backed securities (ABS) transactions.

The Methodology is effective as of December 1, 2016.

DBRS requested comments on October 25, 2016, relating to the new appendices/exhibits to the “Rating U.S. Structured Finance Transactions,” “DBRS Master U.S. ABS Surveillance,” “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 “U.S. Energy Savings Performance Contracts” as well as the related exhibits and appendix to the existing methodologies noted above (the Methodology) provide an analytical framework for reviewing U.S. ESPCs ABS transactions.

The Methodology provides a discussion of the following:
-- Asset Class Summary
-- Federal Government Rationale for ESPCs
-- Industry Overview
-- ESPC Federal Procurement Rules
-- Transaction Structure
-- Credit Considerations
-- Operational Risk Review
-- Cash Flow Analysis
-- Surveillance

The request for comment period has now ended and DBRS received no comments on the proposed Methodology. Consequently, no changes have been made since October 25, 2016, and the Methodology is now effective for all U.S. ESPC ABS transactions as of December 1, 2016.

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

The methodologies 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.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.