DBRS Morningstar Publishes Updated Methodology for Rating U.S. Equipment Lease and Loan Securitizations

DBRS Morningstar published an updated version of its “Rating U.S. Equipment Lease and Loan Securitizations” methodology (the Methodology).

DBRS Morningstar has conducted a periodic review of the Methodology. This update supersedes the previous version published on June 30, 2021, and is effective as of July 1, 2022. 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. Specifically, nonmaterial changes include a clarifying statement to point out that DBRS Morningstar may consider the collateral value coverage available at the end of a lease term based on the review of collateral value curves developed by the sponsor or third-party independent appraisers, when reviewing residual exposures in large-ticket equipment securitizations.

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

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482/baseline-macroeconomic-scenarios-application-to-credit-ratings.

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