DBRS and Morningstar Credit Ratings Confirm U.S. Venture Debt 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 thirty-second 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>

VENTURE DEBT ASSET CLASS
Following an analysis of the Venture Debt 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” in conjunction with DBRS’s analytical tools (DBRS CLO Asset Model); cash flow engines for collateralized loan obligations; and the November 11, 2019, analytical integration approval of the “Rating CLOs and CDOs of Large Corporate Credit” methodology. These methodologies are available on www.dbrsmorningstar.com.

<a href="https://www.dbrs.com/research/362600/" target="_blank">"US ABS General Methodology"</a>

VENTURE DEBT ASSET CLASS TRANSACTION PLACED UNDER REVIEW
As a result of DBRS Morningstar’s selection of MCR’s “U.S. ABS General Ratings Methodology” for Venture Debt ratings, MCR has placed its rating on one outstanding class from one outstanding transaction in this asset class Under Review–Analytical Integration Review. The rating action on such rating was taken in relation to the ongoing consolidation of MCR and DBRS into one single U.S. registration. DBRS Morningstar expects to assign a new rating to the outstanding MCR Venture Debt asset class transaction.

For more information related to the rating action taken on the Venture Debt asset class, please see the following rating announcement:

<a href="https://ratingagency.morningstar.com/PublicDocDisplay.aspx?i=u44mL9O%2bhUs%3d&m=&s=LviRtUKXqs8kml5dHt7FTeE2SZmY0Fvqd4iX49Mk%2f9UapyiFTEO6TA%3d%3d" target="_blank">"Morningstar Credit Ratings Places Rating on Horizon Funding Trust 2019-1 Under Review" </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 www.dbrsmorningstar.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
chris.donofrio@dbrsmorningstar.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
sean.oconnor@dbrsmorningstar.com
+1 212 806-3252

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