Understanding Ratings

Ratings Overview

Ratings Process Overview

DBRS Morningstar provides independent credit ratings services for financial institutions, corporate and sovereign entities and structured finance products and instruments. Credit ratings are forward-looking opinions about credit risk that reflect the creditworthiness of an entity or security. The Rating Committee process facilitates rating decisions, which are a collective assessment of DBRS Morningstar’s opinion rather than the view of an individual analyst. Ratings are based on sufficient information that incorporates both global and local considerations and the use of approved methodologies. They are independent of any actual or perceived conflicts of interest.

Methodologies and Criteria

DBRS Morningstar credit ratings are formed and disseminated based on established methodologies, models and criteria (Methodologies) that apply to entities and securities that we rate, including corporate finance issuers, financial institutions, insurance companies, public finance and sovereign entities as well as Structured Finance transactions. DBRS Morningstar methodologies are periodically reviewed and updated by the team.

Methodology

About Ratings

Rating Scales

DBRS Morningstar uses rating scales to assign and monitor credit ratings. Occasionally, rating scales may be retired or new rating scales introduced. Rating scales currently used by DBRS Morningstar, as well as historical scales and mapping documents, are set out below.

Structured finance credit ratings are denoted by the addition of an "(sf)" modifier, when applicable.

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Rating Policies

DBRS Morningstar maintains a comprehensive range of rating policies to support the objectivity and integrity of its rating processes and to promote the transparency of its rating operations. These policies are reviewed on a regular basis and modified, as necessary, to ensure that they continue to meet these objectives.

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Bloomberg Expected Ratings

DBRS Morningstar has licensed to Bloomberg the authority to use DBRS rating scales and associated trademarks in conjunction with Bloomberg's display of "Expected Ratings." Bloomberg designates an Expected Rating by an "e" after the rating code. Expected Ratings are not a DBRS Morningstar credit rating and do not indicate whether DBRS Morningstar will issue a rating. Expected Ratings are produced by Bloomberg to anticipate agency ratings that may be assigned and are based upon information from third party sources and/or the agency's established policy and practices. Bloomberg's expectation of a DBRS Morningstar rating is provided without any participation or prior review by DBRS Morningstar and may differ from any corresponding DBRS Morningstar rating.