It will act as a signatory to PRI’s “ESG in Credit Risk and Ratings Statement”. Fitch, Moody’s, S&P Global, Kroll Bond are among others, which are existing signatories in the gauge.
“We will maintain full independence in determining which factors may be material to its ratings criteria,” said Suman Chowdhury, Chief Analytical Officer, Acuité Ratings. A comprehensive issuer ESG analysis can be considered an important input to a rating exercise.”
“One of the key aspects in the integration of ESG factors with credit risk and ratings criteria is to identify the former’s financial materiality in a strategic and systematic manner,” he said.
By signing the statement Acuité committed to incorporating ESG into credit ratings and analysis in a systematic and transparent way. As on date, the statement is supported by over 170 investors (with nearly US$40trn in collective assets under management) and 27 credit rating agencies (CRAs) over the world.
“Acuité joins this significant initiative of UNPRI to incorporate ESG factors in a more meaningful way to make tomorrow’s rating methodologies more accurate”, said Antony Jose, Chief Rating Officer, Acuité.
For project specific bonds issued by special purpose vehicles (SPVS) promoted by state or local governments / urban local bodies, factors that can result in bond price volatility and increased risk of defaults include lack of long-term investor interest due to mismanagement of natural resources and public funds, high levels of corruption among others, the company said in a release.
