Dominion Bond Rating Service's announcement last week that it would adopt a "careful and measured approach" to constant proportion debt obligations until it becomes more comfortable with the product has irritated credit structurers looking to place deals in Canada. The DBRS perspective report on CPDOs followed the Toronto-based rating agency's decision to apply more conservative rating methodology to leveraged super senior deals.
"DBRS seems to be having a massive bout of introspection," griped one European credit structurer. Structurers and traders perceived the announcement as an attempt by DBRS to toughen its image and to distinguish itself from the other rating agencies. "It's making it very challenging to get deals done," the structurer added.
Kai Gilkes, managing director and head of the global structured finance quantitative group at DBRS in London, declined immediate comment and Apea Koranteng, head of structured finance in London, did not return a call.