KUALA LUMPUR: Environmental, social and governance (ESG) issues have increasingly influenced credit quality assessments and investment decisions, Moody’s Investors Service said. Moody’s said this in a roundup report today summarising key ESG trends and considerations impacting individual sectors and regions, from its recently-published 2020 Outlooks. “One major trend is that climate change and the transition to a low-carbon economy are growing in relevance for global credit markets,” said Ram Sri-Saravanapavaan, ESG Analyst at Moody’s. Rising concerns of future asset write-downs and reduced cash flow may raise companies' cost of capital or reduce access to funding, impairing their ability to raise, service or refinance debt. “Aging is already a big concern in advanced European economies and Japan, and will become a rising credit issue in emerging markets,” Moody’s said.

Source: New Strait Times February 11, 2020 03:56 UTC