DBRS Morningstar Requests Comments on Proposed Update to Global Methodology for Rating Sovereign Governments

DBRS Morningstar is requesting comments on the proposed update to the Global Methodology for Rating Sovereign Governments, which may, upon the close of the Request for Comment period, supersede the version published on August 29, 2022. This methodology presents the criteria for which sovereign ratings are assigned and/or monitored.

The updated version of the methodology incorporates some changes to Appendix C, which describes the Impact of Sovereign Ratings on other DBRS Morningstar Credit Ratings. Specifically, with regard to Structured Finance ratings, mention of a sovereign-rating-dependent stress regime has been removed. DBRS Morningstar has determined that macroeconomic risk for securitized assets in lower-rated countries is in most cases reflected in historical data that is used in structured finance methodology development and in portfolio asset analysis during the rating process.

These changes are deemed to be material; although, they will have no impact on sovereigns rated under the methodology. The impact on Structured Finance Ratings is described in a separate press release, “DBRS Morningstar Requests Comments on Several European Structured Finance Methodologies,” available at https://www.dbrsmorningstar.com/research/417595.

Comments should be received on or before August 23, 2023. Please submit your comments to the following email address:

[email protected]

DBRS Morningstar publishes on its website all comments received, except in cases where confidentiality is requested by the respondent.

Notes:
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].