All Credit risk and ratings articles – Page 5
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Case studyHow ESG factors are becoming more explicit in credit rating agency commentaries
Below are examples showing how ESG factors are becoming more explicit in CRA commentaries, adding to the list that the PRI published in part two. Corporate and sovereign credit risk examples are offered in chronological order, showing that rating or outlook changes, which are directly influenced by ESG factors, can ...
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Thought leadershipSovereign versus corporate ESG credit risk analysis
In part one, we highlighted the importance of credit ratings in sovereign debt, with the government debt market by far the largest across FI instruments (p. 20).
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Thought leadershipRegional colour from the PRI's ESG in credit risk analysis forums
The forums that the PRI has organised globally have revealed regional differences on three levels: awareness and advancement of ESG consideration; relative sensitivity to ESG factors by country; and regulatory environment and attitudes towards it.
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Thought leadership
Rounding off phase one of the PRI's ESG in Credit Ratings Initiative
This report rounds off phase one of the PRI’s ESG in Credit Ratings Initiative, which has served as an important stimulus for investors and CRAs to sharpen their focus on ESG factors. The progress that it has made in a very short time frame – particularly by the large CRAs ...
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Thought leadershipImproving the transparent and systematic consideration of ESG factors in credit risk analysis
The PRI has compiled a list of more detailed emerging solutions that have been discussed during the investor-CRA roundtables, aimed at improving the transparent and systematic consideration of ESG factors in credit risk analysis.
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Thought leadershipTurning CRA-investor disconnects into action areas
The investor-CRA roundtable discussions revealed that there is broad consensus that ESG factors are not new to credit risk analysis, and that governance is the most important of the three categories when assessing default risk.
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Thought leadershipFostering dialogue between credit rating agencies and investors
This report rounds off a series of three as part of the PRI’s ESG in Credit Ratings Initiative, which started with the launch of the ESG in Credit Ratings Statement in May 2016.
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Thought leadershipESG, credit risk and ratings: part 3 - from disconnects to action areas
Credit risk analysis is evolving. Although the basic tenet of assessing whether an issuer can pay back its obligations on time and in full still holds, the global fixed income (FI) community is increasingly seeking ways to factor in sustainability considerations when allocating capital and managing risks.
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WebinarESG in credit risk analysis: part 2 - exploring the disconnects
Credit rating agency and investor representatives, including Hermes IM, Moody’s Investors Service, Neuberger Berman, Öhman and Pendal Group, discuss the disconnects between investors and credit rating agencies.
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News and press
The PRI publishes its second report on ESG in credit risk analysis and ratings
The Principles for Responsible Investment (PRI) has today launched a new report, Shifting perceptions: ESG, credit risk and ratings – part 2: exploring the disconnects, examining the gaps between investors and credit ratings agencies (CRAs) highlighted in its seminal work, Shifting perceptions: ESG, credit risk and ratings – part 1: ...
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Case studyCredit risk case study: Coca Cola Amatil
Case study by Pendal Group (formerly BT Investment Management)
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Thought leadershipESG in credit ratings: lessons from the automotive sector
The PRI’s forum on ESG in credit ratings that took place in Frankfurt focused on the automotive sector.
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Thought leadershipThe ESG in Credit Ratings Initiative: looking ahead
While it is still too early to identify solutions to the problems frequently encountered by investors and CRAs when incorporating ESG factors in credit risk analysis, there are ripe opportunities for further work.
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Thought leadershipInvestor-CRA disconnect 4: communication and transparency
An overview of the PRI’s observations on the investor-CRA disconnect related to communication and transparency.
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Thought leadershipInvestor-CRA disconnect 3: organisational approaches to ESG
An overview of the PRI’s observations on the investor-CRA disconnect related to organisational approaches to ESG.
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Thought leadershipInvestor-CRA disconnect 2: relevant time horizons to consider
An overview of the PRI’s observations on the investor-CRA disconnect related to relevant time horizons to consider.
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Thought leadership
Exploring the disconnects between investors and credit rating agencies
ESG factors are not new to credit risks analysis, but ESG as a systematic analysis framework is.
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Thought leadershipThe ESG in Credit Ratings Initiative
This is the second report in a three-part series and the output of a project which started in 2015 when, following an investor survey, the PRI assembled a working group to improve understanding of how ESG factors affect credit risk analysis.
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Thought leadershipESG, credit risk and ratings: part 2 - exploring the disconnects
Credit practitioners from investors and credit rating agencies (CRAs) are uniting to discuss environmental, social and governance (ESG) topics.
