DBRS Morningstar Publishes Updated North American Single-Asset/Single-Borrower Ratings Methodology

DBRS Morningstar published an updated version of its “North American Single-Asset/Single-Borrower Ratings Methodology.” DBRS Morningstar has determined the update to be nonmaterial.

Updates to the methodology include provisions for the valuation of transitional commercial real estate assets; additional detail regarding the amortization treatment for transactions structured with certain anticipated repayment date features; and consideration for (1) portfolio credit, for transactions with exceptional granularity and significant portfolio diversification or (2) quality and volatility adjustment credit, for transactions collateralized by extraordinarily strong real estate assets.

DBRS Morningstar has conducted a periodic review of the “North American Single-Asset/Single-Borrower Ratings Methodology.” This update supersedes the previous version of the methodology published on March 1, 2020, and is effective as of March 2, 2021. In addition to concluding the update to be nonmaterial, DBRS Morningstar also determined that no ratings are expected to change as a result of this update.

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.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information regarding the structured finance rating approach and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/359905.

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

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