Nordic Credit Rating (NCR) is committed to increasing transparency into how environmental, social and governance (ESG) factors can impact creditworthiness. These factors will be considered and highlighted in our credit ratings if we believe they are material and relevant to the creditworthiness of an issuer. ESG factors can influence ratings, outlooks and headroom within ratings. The potential influence of ESG factors on our credit ratings depends on the financial impact they have on an entity's creditworthiness, whether positive or negative. We consider each entity's public disclosures on ESG factors and engage in a dialogue with management on the issuer's exposure to and management of risks relating to ESG factors in all facets of its business.
Our rating methodology for non-financial corporate entities incorporates important factors as which we deem to be relevant for assessing their creditworthiness. It takes into account each issuer's exposure to its operating environment, its competitive position, and financial risk factors.
Our analysis of an issuer's exposure to ESG factors is integrated, where relevant, throughout the methodology. The factors included in the assessment represent tangible issues with a potential direct impact on the issuer's operating environment, competitive position, and financial assessment. In addition, an adjustment factor can be applied which can result in a negative adjustment to the rating if we consider that the issuer's exposure to ESG-related risk has not been fully captured elsewhere in the methodology.
Analyst contact details:
Mille O. Fjeldstad, credit rating analyst, +4799038916, email@example.com
Sean Cotten, chief rating officer, +46735600337, firstname.lastname@example.org