DBRS Publishes Updated Methodology on Rating Sovereign Governments

DBRS published an updated sovereign methodology, entitled “Rating Sovereign Governments.”

No substantive changes have been made to the main text of the methodology. This version has incorporated additional details with regard to DBRS’s analysis of country risk within currency unions, particularly the euro area, which are described in Appendix C: The Impact of Sovereign Ratings on Other DBRS Credit Ratings.

The changes in Appendix C do not reflect a change in approach but serve to increase transparency with regard to DBRS’s analysis on the risk of a country leaving the euro area, and the implications this might have for other credit ratings in euro area countries. This provides increased disclosure with regard to the relationship between sovereign ratings and the related risk of a country exiting the monetary union amid crisis conditions.

This update supersedes the previous version published on November 27, 2017. While certain details have been clarified in this methodology, DBRS deems the changes to not be material and has determined that no ratings are or will be changed as a result of these updates.

Notes:
DBRS rating definitions and the terms of use of such ratings are available at www.dbrs.com.

DBRS’s methodologies and criteria are available at www.dbrs.com or by contacting us at info@dbrs.com.