DBRS Morningstar Publishes Updated North American CMBS Multi-Borrower Rating Methodology

DBRS Morningstar published an updated version of its “North American CMBS Multi-Borrower Rating Methodology” (the Methodology).

DBRS Morningstar has conducted a periodic review of the Methodology and the DBRS Morningstar CMBS Insight Model (the Model). This update supersedes the previous version published on August 7, 2020, and is effective as of March 26, 2021. DBRS Morningstar deems the updates not to be material and has determined that no ratings are expected to change as a result of this update.

Updates to the Methodology include provisions to address any deficiencies in principal and interest advancing and related mechanisms, deviations from industry-standard representations and warranties, or risks posed by underwriting exceptions. The Methodology also includes a section on the DBRS Morningstar CMBS Insight Seasoned Module, which was included in the “North American CMBS Surveillance Methodology” until now. Finally, the updated Methodology includes a section on Canadian Market Rank and census metropolitan area (CMA) groups.

Updates to the Model include CMA groups for Canadian transactions and refinements for the treatment of analyst adjustments, including property quality, recourse, and loans exhibiting investment-grade characteristics.

Notes:
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.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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].