Corporate Governance Ratings Launched by Moody's
Moody’s has announced its criteria for assessments on the quality of corporate governance for major corporations in the US and Canadian debt markets. The ratings agency will publish the first of these assessments this summer. Moody’s Corporate Governance Assessments, or CGAs, will take the form of qualitative discussions of key governance issues and will not apply quantitative ratings or scores. These analyses will be made available to clients of the company’s credit research services. Moody’s stresses that it will pay particular attention to governance practices that have potential implications for credit quality, and thus for its credit ratings. ‘Governance has always been one of the many factors that have gone into our assessment of a company’s credit quality,’ said Moody’s Vice President/ Director, Kenneth Bertsch. ‘What we are doing now is looking at these issues in a more systematic way and sharing more detailed findings with issuers and investors. Our end goal is both to better inform investors and to better inform our ratings,’ Bertsch added.