DBRS is a large bond-rating agency in Canada that develops credit ratings for companies as a whole and also for its specific securities. 

Instructions 

Access the agency's website at www.dbrs.com and, under the “About Ratings” heading, locate and investigate information for any specific non-financial industry on how DBRS approaches credit rating analysis within that industry. Also find the document: “DBRS Criteria: Financial Ratio Definitions and Accounting Adjustments— Non-Financial Companies.” 

a. Briefly explain the role that the financial risk rating plays in the overall DBRS rating analysis process. 

b. Identify the particular industry you have chosen. List the factors considered in assessing the specific industry, a company's general business risk profile, and the general financial risk profile, including any primary financial risk assessment metrics determined (specific ratios considered). 

c. For the financial ratios identified in part (b) above, provide definitions that DBRS uses for all terms used in calculating the specific ratios. Is ratio analysis an art or a science? Explain.