Chairman’s Message

At DBRS, we attribute our longevity and success to several core principles that differentiate us from other rating agencies. Firstly, DBRS maintains a stable and constant rating philosophy by rating through economic cycles. Rating changes are made for structural reasons, not cyclical factors. This principle has ensured accurate credit analysis is focused on fact and complemented by analysis that interprets and judges the most plausible future scenarios and outcomes.

Secondly, DBRS places an emphasis on research and transparency by providing a detailed rationale for the rating, with key financial ratios and statistics. DBRS firmly believes equal importance should be placed on the explanation of our ratings, to ensure market participants use DBRS ratings and research with a high level of predictability. We do not expect all parties to necessarily agree with DBRS's rating opinions, but we strive to ensure all parties understand our ratings rationale.

Finally, we clearly separate long-term and short-term debt ratings. DBRS does not directly translate long-term ratings to the short-term scale to establish a short-term rating. Short-term ratings measure the capacity of a company to repay liabilities as they fall due. Thus, income and cash flow stability, strength of the balance sheet, and alternative sources of funds available tend to receive greater emphasis in determining a short-term rating than in assigning a long-term rating.

DBRS will continue to expand globally while maintaining our core principles and providing international credit markets with accepted and recognized ratings that are supported by detailed explanations and future-oriented analysis.

Walter Schroeder,
Chairman