DBRS and Morningstar Credit Ratings Update U.S. Operational Risk Coverage for U.S. ABS

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-third in a series to keep the market updated on analytical integration decisions and is focused on operational risk for U.S. asset-backed securities (ABS).

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

On October 1, 2019, DBRS Morningstar published its twelfth announcement regarding the integration of the analytical teams focused on operational risk for the U.S. ABS and U.S. residential mortgage-backed securities (RMBS) sectors.

<a href="https://www.dbrs.com/research/351206/" target="_blank">“DBRS and Morningstar Credit Ratings Confirm U.S. Operational Risk Asset Class Coverage”</a>

Consistent with the October 1, 2019, press release:

(1) For new DBRS Morningstar rating engagements for which a DBRS methodology has been selected for asset classes in the U.S. ABS sector up to the initial rating date, DBRS Morningstar conducts operational risk reviews using the relevant published DBRS operational risk methodologies.

DBRS Morningstar made the following refinements to its October 1, 2019, press release:

(2) For new DBRS Morningstar ratings assigned to outstanding MCR transactions for which a DBRS methodology has been selected for asset classes in the U.S. ABS sector, DBRS Morningstar’s operational risk reviews may consist of one or more of the following: reliance on operational risk reviews conducted by MCR, reliance on operational risk reviews conducted by DBRS, follow-up with the relevant transaction parties, and/or other factors outlined in transaction-related press releases. Descriptions of the operational risk review process are generally outlined in transaction-related press releases.

(3) For new DBRS Morningstar ratings to be assigned to outstanding MCR transactions for which an MCR methodology may be selected for use by DBRS Morningstar in asset classes in the U.S. ABS sector in the future, DBRS Morningstar expects that the related operational risk reviews may consist of one or more of the following: reliance on operational risk reviews conducted by MCR, reliance on operational risk reviews conducted by DBRS, and/or other factors outlined in transaction-related press releases. DBRS Morningstar also expects that the related descriptions of the operational risk review process will be generally outlined in transaction-related press releases.

DBRS Morningstar will publish further announcements once decisions are made regarding other asset classes in the U.S. ABS, U.S. RMBS, and U.S. Structured Credit sectors, including any related decisions regarding DBRS Morningstar’s approach to operational risk reviews in such asset classes.

For more information regarding sector and asset class decisions related to the U.S. ABS sector, please see the following press releases:

<a href="https://www.dbrs.com/research/353821/" target="_blank">“DBRS and Morningstar Credit Ratings Confirm U.S. ABS Whole Business Asset Class Coverage”</a>

<a href="https://www.dbrs.com/research/355084/" target="_blank">“DBRS and Morningstar Credit Ratings Confirm U.S. ABS Structured Settlements (Mixed Pools) Asset Class Coverage”</a>

<a href="https://www.dbrs.com/research/355085/" target="_blank">“DBRS and Morningstar Credit Ratings Confirm U.S. ABS Cell Tower Asset Class Coverage”</a>

For analytical inquiries regarding this press release, please contact Kathleen Tillwitz, Managing Director, U.S. and European Operational Risk.

DBRS
Kathleen Tillwitz
ktillwitz@dbrs.com
+1 212 806 3265

For rating engagement inquiries regarding the U.S. RMBS 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