NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases its latest report on how environmental, social, and governance (ESG) factors are considered in KBRA’s credit rating process across corporate, financial, and government (CFG) ratings. In this report, KBRA focuses on how ESG factors are integrated into the analysis of midstream energy companies.
ESG issues, and especially environmental considerations, pose significant challenges to a midstream company’s management team. Throughout the rating process, KBRA seeks to understand how management identifies and manages ESG-related risks and opportunities. While it is important for a management team to develop a plan to identify and mitigate ESG risks, affordability of the plans and proper implementation are also critical for long-term success. Companies that are unaware or unable to mitigate these risks will likely see their revenues shrink and credit profiles decline over time.
While many ESG factors play an important role in how KBRA manages its business, and a growing role in helping investors preferentially allocate capital, KBRA believes that the role of analysts at a credit rating agency is to remain focused on ESG factors that are material to credit.
To view the report, please 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) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
