Report examines environmental risk weighting in US state ratings

“In our examination of the ‘E’ factors that influence state credit ratings, climate transition risk is most prevalent in states with high fossil fuel and power generation, particularly when states derive significant economic or financial resources of these carbon-intensive industries,” said S&P Global Ratings Credit Analyst Thomas Zemetis. “We primarily consider climate transition risks in our credit analysis of a state’s economic and fiscal performance, particularly when looking at the composition of the state’s gross product, the number of jobs associated with the energy and income received through severance pay that funds operations.

“We also examine how states are attracting sectors more isolated from transition risk, how states are integrating transition risk into long-term financial and capital planning, and how they are enabling inter-agency and regional coordination to reduce risks. greenhouse gas emissions.”

Climate transition risk takes into account the implications of the global transition to a low-carbon and greener economy via reduced greenhouse gas emissions, changes in public opinion and consumer demand, changes in climate policy or legislation, or technological advances that could cause significant fluctuations in demand and development costs for certain products and services.

This report does not constitute a rating action.

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Media Contact:
Miriam Hespanhol, new York (1) 407-793-0452
[email protected]

Analyst contacts:
Thomas J. Zemetis, new York +1 (212) 4381172
Nora G Wittstruck, new York + (212) 438-8589
Geoffrey E. Buswick, Boston +1 (617) 530 8311
Oscar Padilla, dallas +1 (214) 871 1405

Key contacts:
Media Relations Americas: (1) 212-438-6667
[email protected]

Americas Customer Service: (1) 212-438-7280
[email protected]

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Martin E. Berry