DBRS Morningstar Publishes Final Financial Ratios Criteria

DBRS Morningstar finalized its methodology “DBRS Morningstar Criteria: Common Adjustments for Calculating Financial Ratios.” This methodology presents the criteria outlining the common adjustments that DBRS Morningstar may make to the financial information presented in corporate financial statements.

The methodology supersedes the prior version published on April 10, 2019, and is effective as of March 4, 2020.

No comments were received in response to the request for comment press release issued on January 20, 2020. As noted in the January 20, 2020, press release, DBRS Morningstar will add the on balance sheet lease information presented by issuers in accordance with IFRS 16 and ASC 842 (U.S. GAAP) to the debt balance for the purpose of calculating certain financial ratios. DBRS Morningstar does not believe this new approach will result in any rating changes.

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

For more information on this methodology, visit www.dbrs.com or contact us at [email protected].