Fedafin has been a signatory of the "Statement on ESG in credit risk and ratings" by PRI since August 2018. We share the common vision of improving the systematic and transparent consideration of ESG factors in credit risk and ratings.
It should be noted that, as an independent credit rating agency, fedafin continues to give its opinion exclusively on the probability of default and related parameters such as "loss given default" or "expected loss" in the form of ratings.
This is the key distinction from ESG agencies, which assess companies exclusively or mainly on the basis of ESG criteria, while the question of the probability of default plays no or only a minor role.
You can find further information in our ESG documentation.
Would you like to know more on PRI's ESG in Credit Risk and Ratings Initiative? Watch this video!