{{Short description|Global credit rating agency}} {{Infobox company | name = Morningstar DBRS | logo = Morningstar DBRS logo-red-NEW.png | caption = | type = Subsidiary | traded_as = | fate = | predecessor = DBRS, Dominion Bond Rating Service | successor = | foundation = {{Start date and age|1976}} | founder = Walter Schroeder | defunct = <!-- {{End date|YYYY|MM|DD}} --> | location_city = | location_country = | location = | locations = | area_served = | key_people = | industry = {{ubl|Credit rating|Financial services}} | products = {{ubl|Credit ratings|Financial research}} | services = | revenue = | operating_income = | net_income = | aum = <!-- Only used with financial services companies --> | assets = | equity = | owner = | num_employees = | parent = Morningstar, Inc. | divisions = {{ubl|DBRS Limited|DBRS, Inc.|DBRS Ratings Limited|DBRS Ratings GmbH|DBRS Ratings GmbH|Sucursal en España}} | subsid = | homepage = {{URL|http://dbrs.morningstar.com}} | footnotes = | intl = }}
'''Morningstar DBRS''' is a global credit rating agency with offices in Toronto, New York, Chicago, London, Frankfurt and Madrid. Morningstar DBRS provides independent credit rating services for financial institutions, corporate and sovereign entities and structured finance products and instruments. It was originally founded as '''Dominion Bond Rating Service''' in Toronto in 1976, and its operations were integrated with Morningstar Credit Ratings to form Morningstar DBRS after its acquisition by the global financial services firm Morningstar, Inc. in 2019.<ref>{{Cite news|url=https://www.wsj.com/articles/morningstar-looks-to-expand-ratings-business-with-dbrs-deal-11559151916|title = Morningstar Looks to Expand Ratings Business with DBRS Deal|newspaper = Wall Street Journal|date = 29 May 2019|last1 = Banerji|first1 = Gunjan}}</ref><ref>{{Cite web|url=https://www.morningstar.com/learn/dbrs|title = Morningstar DBRS}}</ref> It is the largest rating agency in Canada.
Morningstar DBRS is the fourth-largest credit rating agency by global market share, with between 2% and 3% of global market share.<ref>{{Cite news|url=https://www.wsj.com/articles/carlyle-warburg-to-go-after-big-three-ratings-agencies-with-dbrs-purchase-1425310277|title=Carlyle, Warburg to Go After Big Three Ratings Firms With DBRS Purchase|last=Martin|first=Timothy W.|date=2015-03-02|work=Wall Street Journal|access-date=2018-03-19|language=en-US|issn=0099-9660}}</ref> The company is one of only four CRAs, including Standard & Poor's, Moody's Investors Service, and Fitch Ratings, to be recognized as an external credit assessment institution by the European Central Bank (ECB).<ref>{{Cite web|url=https://www.eba.europa.eu/regulation-and-policy/external-credit-assessment-institutions-ecai|title=External Credit Assessment Institutions (ECAI) - European Banking Authority|website=www.eba.europa.eu|language=en-GB|access-date=2018-03-19|archive-url=https://web.archive.org/web/20180815072046/http://www.eba.europa.eu/regulation-and-policy/external-credit-assessment-institutions-ecai|archive-date=2018-08-15|url-status=dead}}</ref> In recent years, Morningstar DBRS' sovereign ratings on European nations, including Portugal, Ireland and Italy, were used by the ECB for such purposes.<ref>{{Cite web|url=https://www.ft.com/content/6c7b1db7-79ef-3a0d-9c2b-09dee6407f51|archive-url=https://ghostarchive.org/archive/20221211221235/https://www.ft.com/content/6c7b1db7-79ef-3a0d-9c2b-09dee6407f51|archive-date=2022-12-11|url-access=subscription|url-status=live|title=Portugal retains investment-grade rating at DBRS|last=Wise|first=Peter|date=2017-04-21|website=Financial Times|language=en-GB|access-date=2018-03-19}}</ref>
==History== The company was founded by Walter Schroeder, who started the company in a small office in Toronto with less than $1,000.<ref>{{Cite news|url=https://www.theglobeandmail.com/report-on-business/rob-magazine/is-dbrs-right-on-europe/article4631770/|title=Is DBRS right on Europe?|access-date=2018-03-19}}</ref> Schroeder and his family later sold the company to The Carlyle Group and Warburg Pincus.<ref>{{Cite web|url=https://www.carlyle.com/media-room/news-release-archive/carlyle-group-and-warburg-pincus-acquire-dbrs|title=The Carlyle Group and Warburg Pincus to Acquire DBRS {{!}} The Carlyle Group|website=www.carlyle.com|language=en|access-date=2018-03-19|archive-url=https://web.archive.org/web/20180718114502/https://www.carlyle.com//media-room/news-release-archive/carlyle-group-and-warburg-pincus-acquire-dbrs|archive-date=2018-07-18|url-status=dead}}</ref>
DBRS opened offices in Chicago and New York in 2003. After changing its name from Dominion Bond Rating Service to '''DBRS''' in 2008, the organization opened its current office in London in 2010, an office in Frankfurt in 2018,<ref>{{cite news |last1=Jones |first1=Marc |title=Rating firm DBRS picks Frankfurt as post-Brexit EU base |url=https://www.reuters.com/article/uk-britain-eu-dbrs/rating-firm-dbrs-picks-frankfurt-as-post-brexit-eu-base-idUSKBN1GW12J |accessdate=2019-01-24|work=Reuters |publisher=Reuters}}</ref> and an office in Madrid in 2019.<ref>{{cite web |title=Madrid Opening Marks DBRS's Third Office in Europe |url=https://www.dbrs.com/research/338278/madrid-opening-marks-dbrss-third-office-in-europe |website=DBRS.com |accessdate=2019-01-24}}</ref>
On May 29, 2019, Morningstar, Inc. announced their acquisition of DBRS in an approximately $700 million cash and stock transaction.<ref>{{Cite web|url=https://www.institutionalinvestor.com/article/b1fm99j5644lb2/Morningstar-Buys-Ratings-Agency-DBRS|title = Morningstar Buys Ratings Agency DBRS| date=29 May 2019 }}</ref> The takeover closed on July 2, 2019.<ref>{{Cite web|url=https://newsroom.morningstar.com/newsroom/news-archive/press-release-details/2019/Morningstar-Names-Detlef-Scholz-President-of-Expanded-Credit-Ratings-Organization/default.aspx|title = Morningstar Names Detlef Scholz President of Expanded Credit Ratings Organization}}</ref>
==Corporate structure and regulation== DBRS Limited is the operating company in Canada. DBRS, Inc. is the operating company in the United States. DBRS Ratings Limited is the operating entity based in London and is home to the agency's broader European operations. DBRS Ratings GmbH is the German operating unit and DBRS Ratings GmbH, Sucursal en España is the operating company in Spain.
In Canada, Morningstar DBRS is regulated through the Canadian Securities Administrators and its principal regulator is the OSC.<ref>{{Cite news|url=https://www.theglobeandmail.com/globe-investor/canada-to-impose-code-of-conduct-on-debt-raters/article4197530/|title=Canada to impose code of conduct on debt raters|access-date=2018-03-19}}</ref> In the United States, Morningstar DBRS is regulated by the Securities and Exchange Commission. In Europe, Morningstar DBRS is regulated by ESMA and the FCA.<ref>{{Cite news|url=https://www.wsj.com/articles/SB10000872396390444024204578046422880971986|title=DBRS Pitches Increased Competition for Rating European Debt|last=Bernard|first=Stephen L.|date=2012-10-09|work=Wall Street Journal|access-date=2018-03-19|language=en-US|issn=0099-9660}}</ref>
==References== {{reflist}}
{{NRSRO}} {{Authority control}} Category:Financial services companies of Canada Category:Credit rating agencies Category:Financial services companies established in 1976 Category:1976 establishments in Ontario Category:2019 mergers and acquisitions Category:The Carlyle Group companies Category:Warburg Pincus companies