NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) publishes its Municipal Market Outlook 2020: ESG Considerations Rising report, which discusses the ascendance of environmental, social and governance (ESG) factors as credit issues.
Typically, public finance credit outlooks are largely dependent on expectations surrounding economic conditions. Should economic growth continue, many credit concerns will remain on the sidelines. Conversely, should economic conditions soften in 2020, issues such as chronic pension underfunding and the adequacy of budget reserves, among others, will begin to dominate headlines.
KBRA believes that certain credit issues, especially those related to ESG factors, will become increasingly important in the year ahead, regardless of underlying economic performance.
In this report, we discuss ESG issues as they relate to the municipal markets and how KBRA incorporates ESG factors into our analysis. Notably, we also expect the misguided use of rating ceilings as well as major airport capital plans to have continued relevance in the sector.
To view the report, click here.
Related Publications: (available at www.kbra.com)
- Environmental, Social and Governance (ESG) Considerations by Sector: Public Finance
- First Circuit Follies: Puerto Rico Ruling Slams Municipal Investors Again
- Municipal Default History: Rating Ceilings Do Not Hold Up
- Behind the Headlines for Climate Risk: One Size Does Not Fit All
- States Increase Spending to Address Homeless Crisis
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Paul Kwiatkoski, Managing Director
Harvey Zachem, Managing Director
Linda Vanderperre, Senior Director
Karen Daly, Senior Managing Director
William Baneky, Managing Director
James Kissane, Senior Director