DBRS Publishes Final Operational Risk Assessment for Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) Managers of Large Corporate Credits

DBRS, Inc. (DBRS) released its “Operational Risk Assessment for Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) Managers of Large Corporate Credits” and “Rating CLOs and CDOs of Large Corporate Credit” methodologies after the closure of a public request for comment (RFC) period that ended on December 6, 2018, per the press release “DBRS Requests Comments on Operational Risk Assessment for Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) Managers of Large Corporate Credits,” dated November 5, 2018. DBRS received no comments during the RFC period.

The methodology updates, effective as of December 11, 2018, were:
(1) A new methodology, “Operational Risk Assessment for Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) Managers of Large Corporate Credits.” The methodology outlines the criteria used to evaluate the quality of each asset manager participating in each CLO or CDO transaction rated by DBRS.
(2) A non-material change to the methodology “Rating CLOs and CDOs of Large Corporate Credit,” which replaces the current “Operational Risk Review Process” section with language referencing the new methodology, “Operational Risk Assessment for Collateralized Loan Obligation (CLO) and Collateralized Debt Obligation (CDO) Managers of Large Corporate Credits.”

DBRS has not taken, or will not take, any rating actions as a result of the updates.

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

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