Kroll Bond Rating Agency (KBRA) publishes sector-specific research piece on Environmental, Social and Governance (ESG) factors as they relate to transportation credit analysis.
KBRA’s transportation 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 in its transportation ratings. It does not introduce new credit variables but, rather, expands upon the many factors that KBRA considers in ratings analysis as they relate to ESG. More information on KBRA’s view on ESG factors as they relate to other asset classes is found here. KBRA is publishing sector-specific research pieces on ESG factors as they relate to credit analysis, which can be found at www.kbra.com.
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 becomes 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 read the report, click here.
Related Publications: (available at www.kbra.com)
- Environmental, Social and Governance Risk by Sector
- Environmental, Social and Governance: KBRA Overview
- Aircraft Engine-Backed Financing Gains Momentum With Institutional Investors
- European Airlines: Clear Skies or More Turbulence Ahead?
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.
Boris Alishayev, Director
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Marjan Riggi, Senior Managing Director
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