KBRA Releases Research Aviation: KBRAs Framework for Incorporating ESG Risk Management in Credit Ratings | Financial Buzz

KBRA Releases Research Aviation: KBRAs Framework for Incorporating ESG Risk Management in Credit Ratings

Kroll Bond Rating Agency (KBRA) releases research on our approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process for aviation companies.

Key Takeaways

  • Climate change is likely to affect various aviation assets in different ways, creating opportunities for some issuers and risks for others.
  • Environmental impacts on the aviation industry may result in higher capital expenditures as aviation companies adapt to their end users’ needs and regulatory changes.
  • Stakeholder engagement, especially managing consumer preferences and labor relations, has the potential to affect a company’s reputation and its ability to access capital, which is a key credit risk.
  • As part of our governance analysis, KBRA evaluates the issuer’s risk management policies, regulatory oversight, government relations, cybersecurity plans, and record of managing through geopolitical risks.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Contacts

Boris Alishayev, Senior Director

+1 (646) 731-2484

boris.alishayev@kbra.com

Marjan Riggi, Senior Managing Director

+1 (646) 731-2354

marjan.riggi@kbra.com

Business Development Contact

Arielle Smelkinson, Senior Director

+1 (646) 731-2369

arielle.smelkinson@kbra.com

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