A credit rating is a short, standardized judgment about how likely a borrower is to repay debt, similar to a report-card grade for loans. Investors use these grades to judge risk quickly: higher ratings signal lower chance of default and usually lower interest costs, while lower ratings mean more risk, higher yields, and potential price drops — so ratings help decide whether a bond or loan fits an investor’s risk tolerance.
triparty infrastructuretechnical
A triparty infrastructure is a neutral, automated system that a third-party custodian uses to manage collateral and settlement between two counterparties in secured lending or securities transactions. It acts like a trusted locker and administrator that checks and substitutes collateral, handles payments, and enforces agreed rules so the two sides don’t have to coordinate those details themselves; that reduces operational risk, speeds settlement, and makes short-term funding and secured trades more reliable for investors.
private credit marketsfinancial
Private credit markets are where loans and debt investments are made by non-bank lenders — such as investment firms, private funds, or wealthy individuals — directly to companies or projects rather than through public bonds or bank loans. Investors care because these loans can offer higher returns and steady income like a rental contract, but they also carry more risk and less ability to sell quickly than public bonds, so they affect portfolio yield and liquidity.
on-balance sheet risk assessmentsfinancial
An on-balance sheet risk assessment evaluates the potential problems tied to the assets and liabilities listed on a company’s balance sheet—cash, loans, inventory, property, debt and other recorded items. It measures how likely those items are to lose value, become hard to sell, or trigger extra costs, and estimates how big the hit would be, like checking which items in a household budget could suddenly become unaffordable. Investors care because these assessments affect reported capital, future profits, creditworthiness and the company’s ability to withstand shocks, making them a direct input into valuation and risk decisions.
structured finance methodologiesfinancial
A set of techniques used to bundle, slice and reshape financial assets (like loans, mortgages or receivables) into new investment products with different risk and return profiles. Think of taking many small loans, putting them in a basket, and cutting that basket into pieces so some pieces are safer with lower returns and others are riskier with higher returns. Investors care because these methods change who gets paid first, how much risk they face, and how easy a product is to buy or sell, which affects potential returns and losses.
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TORONTO--(BUSINESS WIRE)--
This year, Morningstar DBRS, a subsidiary of Morningstar, Inc. (Nasdaq: MORN), commemorates 50 years of delivering independent credit ratings and research to the market, a journey that began in April 1976 when Walter Schroeder founded Dominion Bond Rating Service (DBRS) in Toronto.
“From our beginnings in Toronto, Morningstar DBRS has helped shape the Canadian credit markets with rigorous analysis and transparent opinions. That legacy continues as we focus on following our clients and issuance into new asset classes and adjacent markets with the trust of transparent, globally consistent criteria that give investors clarity,” said Richard Sibthorpe, Head of Canada and Global Investor Strategy.
The firm expanded to the U.S. in 2003 and Europe in 2005, laying the groundwork for a global footprint that now serves issuers and investors across key markets. In 2019, Morningstar, Inc. acquired DBRS and combined capabilities to establish Morningstar DBRS as one of the world’s top four credit rating agencies.
After more than two decades of rating global offerings from issuers in the Asia-Pacific (APAC) region, Morningstar DBRS officially expanded its presence in 2025 with the opening of its hub in Sydney, Australia. This move brought Morningstar DBRS’ full range of services closer to clients and investors in the region, establishing a truly global footprint.
In January 2026, BNY integrated Morningstar DBRS’ credit ratings into its Global Collateral platform, broadening eligibility for a wider set of rated securities to be evaluated for collateral allocation on leading triparty infrastructure as well as supporting liquidity and choice for institutional investors. This integration reflects the growing relevance of Morningstar DBRS’ credit ratings in essential fixed income market infrastructure.
“Recent milestones, from the opening of our APAC hub to the inclusion of our ratings on BNY’s Global Collateral platform, reflect the market’s growing adoption of Morningstar DBRS’ opinions across geographies and market sectors,” said Detlef Scholz, President of Morningstar DBRS. “Given our more nimble and service-minded approach, we are also well positioned in the rapidly evolving private credit markets and on-balance sheet risk assessments for insurance companies globally.”
To that end, over the past several years, Morningstar DBRS has invested in methodology initiatives to enhance analytical transparency, global comparability, and consistency across asset classes. The firm has modernized and streamlined its fundamental and structured finance methodologies with the goal of ensuring global applicability and supporting newer asset classes in the market in a clear, transparent, and user-friendly way.
As Morningstar DBRS looks ahead, the firm is deeply committed to continuing to challenge the status quo by bringing differentiated credit insights, solutions, and innovative thought leadership to global credit markets as it helps issuers and investors navigate liquidity and risk with confidence.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $378 billion in AUMA as of Dec. 31, 2025. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on LinkedIn @Morningstar.
About Morningstar DBRS
Morningstar DBRS is a leading provider of independent credit rating services and opinions for corporate and sovereign entities, financial institutions, and project and structured finance instruments globally. Rating more than 4,500 issuers and 68,000 securities, we are one of the top four credit rating agencies in the world and a market leader in Canada, the U.S., and Europe in multiple asset classes.
For 50 years, Morningstar DBRS has been committed to bringing greater transparency and a much-needed diversity of opinion in the credit rating industry. Our nimble approach combined with Morningstar’s global scale and resources enable us to respond to customers' needs in their local markets while also empowering investor success worldwide. Market innovators choose to work with us because of our agility, tech-forward approach, and exceptional customer service.
