Interplay of U.S. Structured Finance Rating Methodologies When Analyzing Structured Finance Transactions

DBRS Morningstar published a commentary with an overview of how it analyzes U.S. structured finance (SF) transactions. SF transactions generally facilitate the issuance of debt to finance a pool of assets or the assumption of exposure to the credit risk of a pool of assets. The analysis of the credit risk facing the holders of the debt warrants the consideration of the funds likely to be available to the issuer of the debt when amounts become due under the legal terms of the debt. In conducting its analysis of SF transactions, DBRS Morningstar makes use of the relevant methodology(ies) that address the credit risk of a transaction.