NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) publishes a sector-specific research piece on Environmental, Social and Governance (ESG) factors as they relate to ABS credit analysis.
When rating ABS, KBRA evaluates the likelihood that the assets being securitized will generate sufficient cash flow to provide for ongoing debt service payments to the rated securities, including the full repayment of principal by the legal final maturity. As part of this analysis, KBRA will consider credit-relevant ESG factors that could affect the future operations of the sponsor or servicer, credit performance of the collateral, and cash flow to the transaction.
KBRA expects ABS investor interest and demand for ESG-related investments to increase as demographics, social secular changes, and energy efficiency standards continue to drive investment decisions. Our continued focus will be to deliver the highest quality credit analysis and research, which will capture and provide transparency on meaningful credit factors in our ratings, including those related to ESG considerations.
To access 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.