Press Release

DBRS Morningstar Publishes Final Methodology for Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings

ABCP, Auto, RMBS
May 17, 2022

DBRS Morningstar finalized its “DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings.”

This methodology presents the criteria for which all DBRS Morningstar ratings are assigned and/or monitored.

The methodology supersedes the prior version published on February 3, 2021, and is effective as of May 17, 2022.

The primary changes to the methodology include the following:
-- Two paragraphs discussing the different levels of impact (Relevant and Significant) and their relative sizing with respect to credit rating notching.
-- Three paragraphs supporting the recommendations of the Task Force on Climate-related Financial Disclosures, which advocates for consistent, comparable, and transparent disclosures of companies’ climate risks.

DBRS Morningstar deems the update not to be material and has determined that no ratings are expected to change as a result of this update.

All comments received during the request for comment period have been published to the DBRS Morningstar website, except in cases where confidentiality is requested by the respondent. However, in this case, there were no comments received.

Notes:
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.