NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases its Environmental, Social and Governance (ESG) overview, which discusses how ESG issues may affect its credit analysis.
KBRA, which is a signatory of the Principles for Responsible Investment’s (PRI) Statement on ESG in Credit Ratings, supports greater clarity and transparency around ESG risks and is dedicated to promoting ESG in investment decisions. The overview provides detail on how ESG factors may affect KBRA’s credit analysis, although credit ratings are, ultimately, issued in accordance with relevant KBRA rating methodologies.
The main takeaways from this report include:
- An overview of ESG risk
- KBRA definitions for some ESG factors that may affect credit
- How credit-relevant ESG factors are incorporated into KBRA methodologies
As climate change grows more extreme and social and governance issues continue to evolve with public opinion, KBRA recognizes the potential complexities in understanding ESG impacts on credit, particularly as ESG risks are typically interdependent and longer-term in nature. However, KBRA will continue to evaluate ESG trends and will be transparent about the credit relevancy of ESG factors, alongside all other factors that influence credit, in its rating reports.
To view the report, click here.
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About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Kate Kennedy, Senior Managing Director
Emilie Nadler, Associate