DBRS Publishes Final Global Methodology for Rating Sovereign Governments

DBRS finalized its Global Methodology for Rating Sovereign Governments. This methodology presents the criteria for which sovereign government ratings are assigned and/or monitored.

The methodology supersedes the prior version published on October 1, 2018 and is effective as of September 16, 2019. A draft of the revised methodology was published on July 22, 2019 as a Request for Comment. No responses were received during the Comment Period.

The main purpose of the revisions is to bring the sovereign scorecard and other statistical appendices into the main body of the text, providing increased transparency with regard to the impact of qualitative factors on DBRS’s sovereign ratings. DBRS’s scorecard has been further streamlined to include only quantitative factors. The other considerations that may influence a Building Block Assessment are disclosed and described as a set of Qualitative Factors.

The updates to the methodology include some other minor changes to the numerical scoring and the mapping to the DBRS long-term obligations rating scale. These changes are intended to further harmonize the description of the analytical process with other DBRS methodologies.

DBRS has determined that no ratings are expected to change as a result of this update.

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

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