DBRS Morningstar Requests Comments on Proposed Criteria for Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings

DBRS Morningstar is requesting comments on the proposed new “DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings.” This criteria presents the standards that explain the environmental, social, and governance (ESG) risk factors that may affect DBRS Morningstar’s assigned and/or monitored credit ratings across all global sectors and asset classes.

The criteria details how DBRS Morningstar evaluates and incorporates 17 ESG credit risk factors in the assessment of its credit ratings across Governments, Financial Institutions, Corporate Finance, and Structured Finance. DBRS Morningstar considers how ESG risks affect the issuer and transaction-specific ratings during the life of the transaction/rating. As with all of DBRS Morningstar’s credit analysis, evaluation of the factors’ impact is forward looking—relevance reflects the factors’ impact in the future, which may not necessarily be the same as it might have been in the past.

Comments should be received on or before December 29, 2020. Please submit your comments to the following email address:

[email protected]

DBRS Morningstar publishes on its website all comments received, except in cases where confidentiality is requested by the respondent.

Notes:
DBRS Morningstar methodologies are publicly available on its website www.dbrsmorningstar.com under Methodologies & Criteria.

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.

For more information on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].