Morningstar DBRS Publishes Updated Methodology for Rating Canadian ABCP and Related Enhancement Features

Morningstar DBRS published an updated version of “Rating Canadian ABCP and Related Enhancement Features” (the Methodology).

The updated version of the Methodology includes a nonmaterial change to clarify that where a series of asset-backed commercial paper (ABCP) notes is supported by full wrap liquidity, Morningstar DBRS may also assign a rating to (or confirm the rating of) such series of notes at the rating level equivalent of the weakest link transaction assessment within the Conduit, if on such conduit's request, each proposed new transaction is assessed by Morningstar DBRS prior to it entering the Conduit.

Morningstar DBRS conducted a periodic review of the Methodology. This update supersedes the previous version published on March 3, 2023, and is effective as of February 27, 2024. Morningstar DBRS deems the update not to be material and determined that no ratings are expected to change as a result of this update.

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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.