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

DBRS Morningstar is requesting comments on the proposed update to “DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings,” which may, upon the close of the Request for Comment period, supersede the version published on May 17, 2022. DBRS Morningstar deems the proposed update not to be material and has determined that no outstanding ratings are expected to change as a result of this update.

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. The revised criteria introduces a new section entitled “Climate Change Considerations,” which provides more detail on DBRS Morningstar’s approach to climate change risk. This does not introduce any new ESG factors but discusses physical and transitional climate risks in the context of two existing climate-related factors: Climate and Weather Risks, Carbon and GHG Costs. In addition, the lists of methodologies in Appendix B were updated to reflect new methodologies and to delete discontinued ones.

Comments should be received on or before June 19, 2023. 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 on this methodology or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].