DBRS Morningstar Publishes Updated Global Methodology for Rating Non-Bank Financials

DBRS Morningstar published an updated version of the “Global Methodology for Rating Non-Bank Financial Institutions” (the Methodology).

In this update of the Methodology, DBRS Morningstar has included its bespoke methodology for TMX Group Limited (TMX) as an appendix (the Appendix). Previously, this bespoke methodology was an appendix to the “DBRS Morningstar General Corporate Methodology.” This relocation of the Appendix does not result in any change to the Appendix itself or the rating analysis details within the Appendix. As a result, there is no impact to the rating of TMX from the relocation of the Appendix.

To enhance the transparency in its ratings, with the publication of the updated methodology, DBRS Morningstar will be publishing the grid grades for each building block of its rated non-bank financial institutions. Each building block grid grade reflects the assessment of the sub factors within that building block. The building block grid grades are then equally weighted to develop the Intrinsic Assessment (IA) of the rated entity. The publication of the grid grades does not result in a change in DBRS Morningstar’s credit analysis and thus will have no impact on the existing ratings.

DBRS Morningstar has conducted a periodic review of the Methodology. This update supersedes the previous version published on September 2, 2022, and is effective as of September 1, 2023. 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.

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].