DBRS Commentary: Ratings Performance for 2009 Was Strong
DBRS’s strong ratings performance for 2009 demonstrates the quality and stability of DBRS long-term credit ratings, according to a commentary published today. The data, published in the “2009 DBRS Corporate Rating Transition and Default Study” and the “2009 DBRS Structured Finance Rating Transition and Default Study,” covers ratings transitions for one-, three- and ten-year horizons across a variety of industry and product sectors.
Global Corporate Finance performance improved over 2008. One- and three-year AAA transition rates were 91.30% and 71.35%, respectively, which exemplifies stable ratings performance and shows improvement over the same periods in 2008. Global Structured Finance ratings, excluding U.S. residential mortgage-backed securities exhibited very strong performance, with AAA transition rates of 98.2% for each of the one- and three-year periods.
The commentary summarizes other ratings performance data that DBRS makes publicly available at www.dbrs.com, including a random 10% sample of Corporate Finance and Structured Finance ratings actions, a complete history of all DBRS ratings actions on or after June 26, 2007. It also incorporates the new Canadian quarterly ratings upgrade and downgrade report.
Importantly, the commentary states that ratings performance is also qualitative, and quantitative data is only one statistical measure. DBRS has made concerted efforts in the areas of transparency and methodologies.
DBRS believes that ratings provide an important information role in the market. DBRS will continue to dialogue with market participants to assist in their understanding of ratings performance and the usage of ratings.
A copy of this commentary is available by contacting us at info@dbrs.com.