DBRS Morningstar Requests Comments on Proposed Updated Guarantee and Other Forms of Support Criteria

DBRS Morningstar is requesting comments on the proposed update to “DBRS Morningstar Criteria: Guarantees and Other Forms of Support” (the Criteria), which may supersede the version published on January 14, 2021. This criteria outlines how DBRS Morningstar evaluates the benefit of guarantees and other forms of support in assigning and/or monitoring corporate ratings.

This update adds a new discussion on Indirect Third-Party Support, which is already present in two DBRS Morningstar structured finance criteria: “North American Structured Finance Flow-Through Ratings” and “European Structured Finance Flow-Through Ratings.” The additional section outlines the flow through concept (adjusted for a corporate context), which may permit the rating of certain contractual counterparties to flow-through to the rated securities, notwithstanding that there is no financial guarantee. No rating changes are expected to arise as a result of this addition to the Criteria. Other editorial changes have also been made.

Comments should be received on or before May 27, 2021. Please submit your comments to the following email address:

corfincomments@dbrsmorningstar.com

DBRS Morningstar publishes on its website all comments received, except in cases where confidentiality is requested by the respondent.

Notes:
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.