Dirty downgrades: how ESG can affect credit ratings

Fitch Ratings will use a new system to study ESG factors when compiling credit ratings. Moody’s warns that debt worth $2.2 trillion across 11 sectors could be downgraded due to environmental risk.

Dirty downgrades: how ESG can affect credit ratings

Fitch Ratings is slowly turning up the thermostat to ensure the financial world feels the heat of rising environmental risk - and its implications on credit rating.

While Environmental, Social and Governance ESG factors have long been a consideration for corporates, the agency said it is set to become even more important. It will now judge corporates more closely by launching a new indicator that will be used to analyse 1500...

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