Press Release

DBRS Morningstar Publishes Final Corporate Real Estate Methodology

Real Estate
June 04, 2020

DBRS Morningstar finalized its “Rating Entities in the Real Estate Industry” methodology (the Methodology).

The Methodology presents the criteria for which ratings of entities in the real estate industry (e.g., real estate investment trusts and other such entities) are assigned and/or monitored.

The Methodology supersedes the prior version published on April 23, 2019, and is effective as of June 4, 2020.

The Methodology was published on a request for comments basis on April 22, 2020, and the comment period closed on May 22, 2020. No comments were received.

While DBRS Morningstar deems the update not to be material and has determined that no ratings are expected to change as a result of this update, per the April 22, 2020, press release, the Methodology outlines how DBRS Morningstar assigns an issuer rating to real estate entities, which is generally the unsecured debt rating of the issuer. Such issuer rating can serve as the reference point for a recovery rating for non-investment grade issuers in accordance with “DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers”.

Now that the request for comment process is complete and the methodology is in final form, DBRS Morningstar expects to assign issuer ratings (and recovery ratings to non-investment grade issuers) prior to June 30, 2020. Apart from the introduction of issuer ratings (and recovery ratings, as appropriate), no ratings are expected to change as a result of the publication of the Methodology.

All comments received during the request for comment period have been published to the DBRS Morningstar website, except in cases where confidentiality is requested by the respondent.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:
DBRS Morningstar methodologies are publicly available on its website under Methodologies & Criteria.

For more information on the Methodology, or on this industry, visit or contact us at