Sustainable Investment Awards 2023

Most transparent credit rating agency: Moody's Investors Service

Moody's Investors Service (MIS) says it aims to incorporate all material credit considerations, including ESG factors, into its credit analysis.

During the last year, MIS says it has provided greater transparency to market participants about how ESG considerations are incorporated into credit ratings and how they impact creditworthiness.

Notably, ESG issuer profile and credit impact scores for more than 10,000 rated entities globally are now available and assessed through the MIS cross-sector ESG methodology. These scores enable end-users to measure, benchmark and manage exposure and risk within credit portfolios, according to MIS.

Brian CahillMIS also says it is helping market participants understand how ESG considerations affect financial performance and credit quality through thought leadership and market outreach.

This includes participating in the Taskforce on Climate-Related Financial Disclosures (TCFD) and UN Principles for Responsible Investment's (PRI) Credit Risk and Ratings Initiative and launching a proprietary ESG credit data platform, Moody's ESGView, which it says provides a transparent, holistic understanding of ESG in credit analysis.

In October 2022, MIS published a framework to provide second party opinions (SPOs) on sustainable debt. This SPO offering aims to meet the growing demand in debt capital markets for rigorous, consistent independent analysis of the sustainability credentials of labelled debt.

Brian Cahill, global head of ESG for MIS, commented: "We are proud to be recognised by Environmental Finance for our transparency on ESG integration.

"In addition to the roll-out of ESG issuer profile and credit impact scores on over 10,000 rated entities with advanced technology, Moody's is committed to providing issuer-level insight, in line with rising market demand, into how ESG considerations impact credit ratings that can be used for individual deep dives or portfolio analytics.

"By doing so, we aim to serve the diverse and evolving ESG needs of debt capital markets today and in the future."