Date of Release: 2007-04-23

DBRS Clarifies Ratings Based on Public Information

DBRS has today announced tightening of its definition of ratings based on public information, also referred to as unsolicited ratings. For greater clarity, DBRS has updated its policy definition for unsolicited ratings to indicate that it is DBRS who has initiated coverage and that DBRS does not enter into discussions with the issuer.

On occasion, when DBRS believes there is a meaningful market or investor interest served by coverage of an issuer and the issuer declines to enter into any discussions, DBRS may elect to initiate ratings coverage without being requested to do so. Such ratings will be based solely on public information. Sufficient public information must be available to support the analysis. In these circumstances, DBRS uses the following disclosure in the press release and the accompanying report: “Note: This rating is based on public information.”

DBRS’s governance approach to ratings is the same whether the rating is based on public information only or a typical rating based on management involvement. All DBRS ratings are determined by the same rating committee policies and process.

DBRS maintains a range of policies and procedures to address conflicts of interest and to prevent unfair, coercive and abusive practices.

The note disclosure, “This rating is based on public information”, will no longer be applied to this rating.