Morningstar DBRS Finalizes U.S. Small Business Securitization Methodologies

Morningstar DBRS finalized the following methodologies. These methodologies present the criteria for which U.S. small business ratings are assigned and/or monitored:

-- "Rating U.S. Structured Finance Transactions" - Appendix XVIII: U.S. Small Business (U.S. Small Business New Issue Appendix);
-- "Operational Risk Assessment for U.S. ABS Originators" - Exhibit 36: Sample Operational Risk Questions for U.S. Small Business Originators (U.S. Small Business Originators Exhibit);
-- "Operational Risk Assessment for U.S. ABS Servicers" - Exhibit 37: Sample Operational Risk Questions for U.S. Small Business Servicers (U.S. Small Business Servicers Exhibit); and
-- "Morningstar DBRS Master U.S. ABS Surveillance" - Appendix XXXIV - U.S. Small Business (U.S. Small Business Surveillance Appendix).

Publication of these methodologies follows the conclusion of the request for comment period that began on December 20, 2023. Morningstar DBRS received no comments during the request for comment period related to the U.S. small business methodologies. The above-referenced methodologies will be used in connection with the assigning of new Morningstar DBRS credit ratings, and the monitoring of outstanding Morningstar DBRS credit ratings, in the U.S. small business asset class, effective February 22, 2024.

The methodologies supersede the following prior versions:

-- "Rating U.S. Structured Finance Transactions" (October 30, 2023)
-- "Operational Risk Assessment for U.S. ABS Originators" (July 20, 2023)
-- "Operational Risk Assessment for U.S. ABS Servicers" (July 20, 2023)
-- "DBRS Morningstar Master U.S. ABS Surveillance" (October 22, 2023)

All comments received during the request for comment period have been published to the Morningstar DBRS website, except in cases where confidentiality is requested by the respondent.

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

For more information on this methodology, or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.