Rating Agencies

Rating Agency Developments

 

On January 4, 2017, KBRA updated its methodology for rating Single-Family Rental (SFR) securitizations. Report.

On January 4, 2017, KBRA updated its methodology for rating U.S. CMBS multi-borrower securitizations. Report.

On December 30, 2016, DBRS updated its Canadian surveillance methodology for CDOs of large corporate credit. Report.

On December 29, 2016, Fitch updated its rating criteria for U.S. equipment lease and loan ABS. Report.

Rating Agency Developments

On December 14, 2016, Fitch published its rating criteria for debt issued by airports. Report.

On December 12, 2016, DBRS released its methodology for rating project finance. Report.

On December 12, 2016, DBRS released its methodology for rating solar power projects. Report.

On December 12, 2016, DBRS released its methodology for rating wind power projects. Report.

On December 12, 2016, DBRS released its methodology for rating companies in the pipeline and the diversified energy industry. Report.

On December 12, 2016, DBRS released its preferred share and hybrid security criteria for corporate issuers. Report.

On December 8, 2016, Fitch updated its EMEA RMBS rating criteria with an addendum for analyzing securities backed by Belgian residential mortgage loans. Report.

On December 8, 2016, Fitch updated its EMEA RMBS rating criteria with an addendum for analyzing securities backed by French residential mortgage loans. Report.

On December 8, 2016, DBRS released its surveillance methodology for CMBS transactions. Report.

Rating Agency Developments

 

On December 7, 2016, Moody’s published its ratings methodology for sustainable net cash flow and value for CMBS and CRE CDO CLO real estate collateral in the Americas and ex-Japan Asia Pacific. Report.

On December 6, 2016, DBRS published its methodology for rating European covered bonds. Report. Addendum.

On December 1, 2016, DBRS updated its master ratings methodology for U.S. asset-backed securitizations (“ABS“). Report.

On December 1, 2016, DBRS updated its ratings methodology for U.S. structured finance transactions. Report.

On December 1, 2016, DBRS updated its methodology for evaluating U.S. ABS originators. Report.

On December 1, 2016, DBRS updated its methodology for evaluating U.S. ABS servicers. Report.

On December 1, 2016, Fitch updated its U.S. RMBS master rating criteria. Report.

On December 1, 2016, Fitch updated and merged its ratings criteria for analyzing U.S. RMBS backed by seasoned performing, re‑performing and non‑performing loans purchased in the secondary market and issued starting in 2014. Report.

On December 1, 2016, Fitch updated its global consumer ABS rating criteria for analyzing ABS backed by consumer receivables globally. Report.

On December 1, 2016, Fitch updated its ratings criteria for analyzing large loans in CMBS. Report.

Rating Agency Developments

 

On November 30, 2016, Fitch published its U.S. water and sewer revenue bond rating criteria. Report.

On November 29, 2016, Fitch published its rating criteria for RMBS transactions in Europe, Middle East and Africa (EMEA). Report.

On November 29, 2016, Fitch published its rating criteria for GARVEE bonds. Report.

On November 28, 2016, DBRS published an update to its approach to rating U.S. RMBS transactions. Report.

On November 28, 2016, Moody’s published its approach to rating Europe, Middle East and Africa (EMEA) CMBS transactions. Report.

Rating Agency Developments

 

On November 23, 2016, Moody’s published its updated methodology for Special Assessment/Special Property Tax (Non-Ad Valorem) Debt. Release.

On November 17, 2016, Fitch published its updated criteria for Analysis of Commercial Real Estate Loans Securing Covered Bonds. Release.

On November 17, 2016, Fitch published its updated rating criteria for Commercial Mortgage-Backed Securities and Loans in EMEA. Release.

Rating Agency Developments

 

On November 16, 2016, Fitch issued a report entitled: Fitch Updates Recovery Ratings and Notching Criteria for Equity REITs. Release.

On November 16, 2016, Fitch issued a report entitled: Fitch Updates Rating Criteria for U.S. Military Housing. Release.

On November 15, 2016, Fitch issued a report entitled: Fitch Updates U.S. RMBS Surveillance and Re‑REMIC Criteria. Release.

On November 11, 2016, Fitch issued a report entitled: Fitch Updates U.S. and Canadian Multiborrower CMBS Surveillance Criteria. Release.

On November 11, 2016, Moody’s updated its Index of Rating Methodologies. Report.

On November 11, 2016, Moody’s updated its index entitled: Outdated Credit Rating Methodologies. Report.

On November 10, 2016, Fitch issued a report entitled: Fitch Updates Surveillance Criteria for U.S. CREL CDOs. Release.

On November 10, 2016, Fitch issued a report entitled: Fitch Clarifies Criteria for Rating U.S. FFELP Student Loan ABS. Release.

On November 10, 2016, Moody’s issued a report entitled: U.S. Housing Finance Agency Single Family Programs. Report.

On November 10, 2016, Moody’s issued a report entitled: U.S. Housing Finance Agency Multifamily Methodology. Report.

On November 10, 2016, Moody’s issued a report entitled: U.S. Public Housing Authority Capital Fund Bonds. Report.

On November 10, 2016, Moody’s issued a report entitled: U.S. Housing Finance Agency Issuer Rating Methodology. Report.

On November 10, 2016, Moody’s issued a report entitled: Refining and Marketing Industry. Report.

Rating Agency Developments

 

On November 9, 2016, Fitch updated its ratings criteria for analyzing U.S. wireless tower transactions. Report.

On November 8, 2016, DBRS published its ratings methodology for Canadian trade receivable securitization transactions. Report.

On November 8, 2016, DBRS published its ratings methodology for Canadian residential mortgages, home equity lines of credit and reverse mortgages. Report.

On November 8, 2016, DBRS published its ratings methodology for Canadian credit card and personal line of credit securitizations. Report.

On November 4, 2016, Fitch updated its ratings criteria for charter schools. Report.

Rating Agency Developments

 

On October 26, 2016, Fitch published its updated Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds. Press Release.

On October 26, 2016, Fitch published its updated Covered Bonds Rating Criteria. Press Release.

On October 25, 2016, DBRS published a report entitled Rating European Consumer and Commercial Asset‑Backed Securitizations. Report.

On October 25, 2016, DBRS published a report entitled Rating U.S. Credit Card Asset‑Backed Securities. Report.

On October 25, 2016, DBRS published a report entitled Rating European Sub‑Sovereign Governments. Report.

On October 24, 2016, Fitch published its updated Canadian Residential Mortgage Rating Criteria. Release.

On October 20, 2016, DBRS published a report entitled Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry. Report.

On October 20, 2016, DBRS published a report entitled Rating Companies in the Gaming Industry. Report.

On October 20, 2016, DBRS published a report entitled Rating Companies in the Automotive Supplier Industry. Report.

On October 20, 2016, DBRS published a report entitled Rating Companies in the Automotive Manufacturing Industry. Report.

European Commission Report on Credit Rating Agencies Regulation

 

On October 19, 2016, the European Commission published a report (COM(2016) 664 final) responding to reporting obligations set out in Regulation 1060/2009 (CRA Regulation).

The report:

  • Analyzes references to external credit ratings in EU legislation and in private contracts among parties in financial markets.
  • Assesses potential alternatives to external credit ratings that are currently used by market participants in the EU. The Commission is of the view that there are currently no feasible alternatives that could entirely replace external credit ratings.
  • Evaluates the impact of the CRA Regulation on governance and internal procedures of CRAs, in particular the prevention of conflict of interests and the use of alternative remuneration models.
  • Analyzes the provisions relating to structured finance instruments (SFIs) and their potential extension to other asset classes. The Commission does not think it is appropriate to extend CRA Regulation provisions to other financial products.
  • Assesses the impact and effectiveness of the CRA Regulation’s measures concerning competition in the credit rating industry. Given some provisions are still in the process of implementation, the Commission will continue monitoring the development of the market before considering the adoption of further measures. More generally, the Commission will seek to avoid and further reduce regulatory barriers to market entry.
  • Considers the feasibility of establishing a European CRA for the assessment of sovereign debt and a European credit rating foundation for all other credit ratings. The Commission considers there to be no need at present for a European CRA specialized in sovereign debt or for other credit ratings.