DBRS Morningstar Publishes Final Operational Risk Assessment for European Structured Finance Servicers Methodology

DBRS Morningstar finalised its “Operational Risk Assessment for European Structured Finance Servicers” methodology after the closure of a public request for comment (RFC) period that ended on 31 October 2020, per DBRS Morningstar’s press release, “DBRS Morningstar Requests Comments on Operational Risk Assessment for European Structured Finance Servicers Methodology”.

The methodology presents the operational risk assessment criteria for which European Structured Finance transaction ratings are assigned and/or monitored. DBRS Morningstar expanded the scope of the methodology with the inclusion of an internal assessment process to review servicers of trade receivables while ceasing the internal assessment previously used when reviewing master servicers.

The methodology supersedes the previous version published on 28 February 2020 and is effective as of 19 November 2020.

The methodology was published on a request for comments basis on 30 September 2020. All comments received during the RFC period have been published to the DBRS Morningstar website, except in cases where confidentiality is requested by the respondent.

Notes:
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at:
https://www.dbrsmorningstar.com/research/357792.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:
https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release:
https://www.dbrsmorningstar.com/research/358308.

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

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