Climate Change-Driven Credit Considerations in Structured Finance

In this episode, Mudasar Chaudhry, who leads European Structured Finance Research at Morningstar DBRS, is joined by Begum Gursoy, Director, Sustainable Finance Solutions at Morningstar Sustainalytics, and Christian Aufsatz, Managing Director, European Structured Finance Ratings at Morningstar DBRS, to discuss topics related to climate change and relevant credit considerations in structured finance.
The inaugural part of the session saw us discussing the key differences between second-party opinions (SPOs) and credit ratings. We then turned our attention to the key considerations in the context of SPOs and credit risk analysis when considering climate change. We also discussed if SPOs or a lack thereof, impact credit ratings analysis in European Structured Finance. The speakers also shared their views on whether ESG-labelled transactions carry any premium and how they see the market evolving.
Related research is available at the following link:

• Commentary - ESG: Climate Risk and Credit: -- https://dbrs.morningstar.com/research/413235/esg-climate-risk-and-credit
• Methodology - Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings: https://dbrs.morningstar.com/research/427030/morningstar-dbrs-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings

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