NEW YORK–(BUSINESS WIRE)– Kroll Bond Rating Agency (KBRA) publishes sector-specific research pieces on Environmental, Social and Governance (ESG) factors as they relate to credit analysis.
KBRA’s public finance ratings incorporate all material credit factors including those that relate to ESG factors. This report serves to increase transparency around how KBRA views ESG factors as they relate to credit risk. It does not introduce new credit variables but, rather, expands upon the many factors that KBRA considers in our ratings analysis as they relate to ESG.
While ESG factors may influence ratings, it is important to underscore that KBRA’s ratings do not incorporate value-based judgments around credit factors. Rather, KBRA’s ratings incorporate expectations for the credit impact of such factors, which include an evaluation of risk management and mitigation efforts.
KBRA’s analytical approach intends to capture all meaningful factors into our ratings when we believe there will be an impact on the credit in the near term or in the future, after considering risk mitigation efforts. Factors that may influence credit analysis are not always static and require continuous surveillance. As credit factors develop more clarity, they are incorporated into KBRA’s surveillance reviews. And as new information comes available and as future expectations evolve, the information and expectations may trend in a way that could materially impact KBRA’s credit analyses and ratings.
To view the report, click here.
November 6, 2019