DBRS and Morningstar Credit Ratings Confirm U.S. ABS Structured Settlements (Mixed Pools) Asset Class Coverage

On July 11, 2019, Morningstar Credit Ratings, LLC (MCR) and DBRS, Inc (DBRS; together, DBRS Morningstar) published their first announcement regarding the integration of the analytical teams focused on the U.S. Structured Finance market. Today’s press release is the twenty-first in a series to keep the market updated on analytical integration decisions and is focused on the U.S. asset-backed securities (ABS) sector.

<a href="https://www.dbrs.com/research/347875/" target="_blank">"DBRS and Morningstar Credit Ratings Announce Analytical Integration Process and Ratings Overlap."</a>

STRUCTURED SETTLEMENTS (MIXED POOLS) SECURITIZATION ASSET CLASS
Following an analysis of the Structured Settlements (Mixed Pools) asset class, DBRS Morningstar concluded that, effective today, any new rating engagements in this asset class will be rated and monitored by DBRS Morningstar using MCR’s U.S. ABS General Ratings Methodology. This methodology is available on www.dbrs.com:

<a href="https://www.dbrs.com/research/355088/" target="_blank">"U.S. ABS General Methodology"</a>

STRUCTURED SETTLEMENTS (MIXED POOLS) ASSET CLASS TRANSACTIONS PLACED UNDER REVIEW
As a result of the selection of MCR’s U.S. ABS General Ratings Methodology for use by DBRS Morningstar for Structured Settlements (Mixed Pools) ratings, MCR has placed two publicly rated outstanding transactions and four classes in this asset class Under Review – Analytical Integration Review. The rating actions on such ratings were taken in relation to the combination of MCR and DBRS into a single U.S. registration. DBRS Morningstar expects to assign new ratings to the outstanding MCR Structured Settlements (Mixed Pools) asset class transactions. Mixed Pools may consist of a mix of guaranteed, insured, and/or uninsured life contingent collateral.

For more information related to the rating actions taken on the Structured Settlements (Mixed Pools) asset class, please see the following rating announcement:

<a href="https://ratingagency.morningstar.com/PublicDocDisplay.aspx?i=vUCWfsBNDhs%3d&m=&s=LviRtUKXqs8kml5dHt7FTeE2SZmY0Fvqd4iX49Mk%2f9UapyiFTEO6TA%3d%3d" target="_blank">"Morningstar Credit Ratings Places Ratings on DRB Capital Securitization, Series 2017-A and DRB Capital Securitization, Series 2018-A Under Review"</a>

STRUCTURED SETTLEMENTS (NON-LIFE CONTINGENT) ASSET CLASS
On August 20, 2019, DBRS Morningstar made an announcement regarding the structured settlements transactions that only include guaranteed non-life contingent structured settlements contracts that do not contain mortality-related features. As reflected in that announcement, DBRS Morningstar uses the DBRS Morningstar methodology Rating U.S. Structured Settlements Asset-Backed Securitizations to rate new rating engagements in the guaranteed non-life contingent structure settlements asset class in addition to assigning new ratings to outstanding MCR-rated transactions. For information related to the announcement regarding the traditional structured settlements asset class, please see the following press release:

<a href="https://www.dbrs.com/research/349502/" target="_blank">"DBRS and Morningstar Credit Ratings Confirm U.S. ABS Asset Class Coverage"</a>

DBRS Morningstar methodologies, including any MCR methodology selected for use by DBRS Morningstar as part of the analytical integration process, are publicly available on its website www.dbrs.com under Methodologies & Criteria.

For analytical inquiries regarding this press release, please contact Chris D’Onofrio, Managing Director, U.S ABS.

DBRS
Chris D’Onofrio
cdonofrio@dbrs.com
+1 212 806 3284

For rating engagement inquiries regarding the U.S. ABS asset class coverage or any asset classes not listed, please contact Sean O’Connor, Managing Director, Head of Global Business Development.

DBRS
Sean O’Connor
soconnor@dbrs.com
+1 212 806 3252

For more information on the transactions rated by DBRS, please visit http://www.dbrs.com or contact DBRS at info@dbrs.com. For transactions rated by MCR, please visit http://www.morningstarcreditratings.com or contact ratingagency@morningstar.com.

DBRS
Stephen Bernard
sbernard@dbrs.com
+1 212 806 3240