DBRS unveils new methodology for large-cap CLOs

Toronto-based rating agency DBRS has unveiled a new methodology for rating mainstream CLOs. The agency has put out a request-for-comment on its new approach for large-cap CLOs – see methodology – and wants market feedback by 27 January.

The new initiative to rate CLOs backed by broadly syndicated loans follows DBRS’s push into mid-market CLOs early last year. In recent years the firm has expanded its New York and London structured finance ratings business, and has targeted CLOs as a key area for expansion.

Further details of the cashflow methodology that DBRS plans to use to rate corporate credit securitisations can be found here. The new model replaces previous methodologies that DBRS used to rate CLOs.