DBRS Releases Updated Global Methodology for Rating Finance Companies; No Rating Changes

DBRS has today published an updated version of the Global Methodology for Rating Finance Companies that is effective as of today. The changes include additional appendices discussing unique factors DBRS’s considers when rating companies in the student loan and credit card sectors. There are no material changes from the last published version in terms of the core approach used by DBRS to assess finance companies. Accordingly, this update has not resulted in any rating changes or other rating actions. Given the limited changes, this update was not published with a request for comment.

Notwithstanding today’s release, DBRS continues to work on enhancing the effectiveness of our finance company methodology and related criteria. To ensure consistency in our finance company ratings, DBRS is working on introducing specific metrics that can be linked to our building blocks and tracked over time. As part of this effort, DBRS also intends to revise the application of the building blocks through the modification of the grids. DBRS anticipates putting out a request for comment on the enhanced methodology in early 2017.

This update supersedes the previous version published in October 14, 2015. While certain details have been clarified in this methodology, DBRS deems the changes to not be material and has determined that no ratings are, or will be, changed as a result of this update.

Notes:
DBRS rating definitions and the terms of use of such ratings are available at www.dbrs.com.

DBRS’s methodologies and criteria are available at www.dbrs.com or by contacting us at info@dbrs.com.