ESG
We incorporate ESG issues into our fundamental analysis of companies and assess their impact on an issuer’s financial performance, default risk and bond valuations. The process involves assessing the quality of the company’s corporate governance by taking into account its level of corporate transparency, track record of business integrity, and audit practices. We also consider the severity of allegations and reputational risks. A company’s preparedness in dealing with ESG issues is also key. Our credit analysts determine the materiality of these issues and the appropriate risk premium to be priced. We make use of both information gathered from public sources as well as directly through our interactions with the companies in our assessment and monitoring.