Financial officers urge rating agencies to explain ESG's role in state credit ratings
Twenty-two U.S. financial officers asked Moody’s, Fitch and S&P to explain how ESG policies have affected state credit ratings and warned against using ESG as a rating factor.
Twenty-two financial officers from states across the U.S. sent a joint letter to Moody’s, Fitch and S&P requesting detailed explanations of how environmental, social and governance (ESG) policies have influenced state credit ratings. The officials warned the agencies about factoring ESG into ratings and sought transparency on any ESG-driven adjustments.