DBRS approved as “designated rating agency”

Credit rating agency implements updated business code

By: James Langton
November 5, 2012 November 5, 2012
16:00

Toronto-based DBRS Ltd. said Monday it has received regulatory approval as a designated rating organization (DRO), and that it has updated its code of conduct to comply with global standards.

DBRS said that it has been approved as a DRO by the Ontario Securities Commission (OSC), under the new Canadian regulatory framework for credit rating organizations. The new regime requires rating agencies to implement policies regarding governance, ratings objectivity, conflicts of interest and independence, transparency and timeliness of ratings disclosures and confidential information. Regulatory recognition allows DBRS’s ratings to continue to be used in Canadian securities legislation.

Additionally, the firm said that it has implemented an updated business code, which reflects, among other things, compliance with the International Organization of Securities Commissions’ (IOSCO) code of conduct for credit rating agencies. The updated code also sets out policies that DBRS has implemented to ensure the objectivity and integrity of its ratings and the transparency of its operations. It has also implemented additional policies to meet the rules required by Canadian regulators.

“As the first and leading credit rating agency in Canada, DBRS recognizes that it plays a significant role here,” said Daniel Curry, global head of the DBRS group of companies. “DBRS is committed to its Toronto base and understands that it is important for the growth of Canadian companies. DBRS continues to invest in its Canadian franchise and ratings expertise to ensure it provides investors with transparent and insightful risk analysis and opinions.”

Back in April, DBRS was approved as a DRO under an order that gave it a transition period to allow the firm to revise its global code of conduct and other policies in order to be compliant with the new DRO rules. And, the European Securities and Markets Authority (ESMA) also assessed the Canadian rules as equivalent to European rules, allowing DBRS ratings to be used for regulatory capital purposes in the European Union.