DBRS Ltd, is an independent, private, reputed rating agency, which provides ratings pertaining to the capital markets of the world. DBRS Ltd, is widely known for its rating capabilities especially in Latin America, North America, Europe and Asia. It has offices operating in Frankfurt, New York, London, Chicago and Paris. It has its headquarters in Toronto, Canada.
It analyzes credit accounts belonging to corporate houses, financial establishments. DBRS Ltd, is mainly recognized as a credit analyst, covering issues related to securitization as well as structured finances.
This renowned rating agency, conducts credit ratings on long term debts, short term debts, bonds, commercial paper, preferred shares. Falling within the purview of credit rating, are securities, which are backed by assets.
It basically offers the following services:
Rating of indices
Rating credit reports
DBRS Ltd, believes in following a very logical, direct and analytical method of rating reports. It carries out rating on the basis of certain norms.
They can be enumerated as under:
They make it a point, that their analysts are always there to assist clients, when required.
They do not believe in carrying out superficial research. They deliver rating results within the time specified by the client.
Ensure consistent ency and maintain stability in rating techniques.
Method of rating by DBRS Ltd:
Credit reports are rated in order to find out the creditworthiness of a consumer. It also ascertains, if a debtor is in a position to repay the debt amount. DBRS Ltd, gathers information about the debtor. Thereafter, it conducts quantitative and qualitative analysis of information collected.
Credit report rating carried out by DBRS, Ltd yields results in the following categories:
“Confirmed and discontinued”
“Placed under review”.
It rates corporate reports on the basis of the following:
Stable rating philosophy:
This philosophy envisages that majority of the issuers are likely to be affected due to the rate of growth of the economy being dynamic. It states that volatility in the market conditions is directly proportional to risk involved. A higher volatility means greater risk and vice versa.
Quantitative and Qualitative analysis:
DBRS Ltd, rates debt reports depending, not only on the present performance but it also reviews past performances. It maintains an optimum balance of qualitative as well as quantitative estimation of the debt account.
In the event, when there is rating of debts, which are not equally ranked, the lower ranked debts are usually given a lower rating by DBRS Ltd. There are certain factors, which determine the rank of debts availed by borrowers.
However, there are certain limitations, while rating is conducted. There might be instances, when certain ratings may not follow any one of the principles.