Morningstar DBRS Publishes Updated Rating Marine Container Securitizations Methodology

Morningstar DBRS published an updated version of the “Rating Marine Container Securitizations” methodology.

The updates to the methodology include (1) the statement that the existing long-term and direct finance leases are typically assumed to continue until renewal at the end of the remaining existing lease term and (2) the statement that Morningstar DBRS may consider applying additional stresses based on its review of the composition of a securitized collateral pool by lease type and remaining lease term. In addition, the methodology now says it may be used to rate similar asset securitizations. The similar assets exhibit alike performance drivers and metrics (e.g., utilization rate, per diem, renewable term, and spot lease options) and may be securitized using comparable transaction structures. The majority of other changes either (1) update the industry statistics and recent developments or (2) are editorial in nature.

Morningstar DBRS conducted a periodic review of the “Rating Marine Container Securitizations” methodology. This update supersedes the previous version published on January 29, 2021, and is effective as of January 30, 2024. Morningstar DBRS deems the update not to be material and determined that no ratings are expected to change as a result of this update.

Notes:
Morningstar DBRS methodologies are publicly available on its website dbrs.morningstar.com under Methodologies & Criteria.

For more information on this methodology or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.