...Environmental, social, and governance (ESG) credit factors have long been considered within our structured finance analytical framework. In most cases, ESG credit factors are not key rating drivers and are captured by other aspects of our analysis. Even in cases where, in our opinion, ESG credit factors could be material enough to become direct considerations, most ESG credit factors generally pose indirect benefit or risk to structured finance transactions, and structural features can mitigate risks. Hence, there have been limited cases where ESG credit factors were a primary rating driver in our analysis. S&P Global Ratings' issue credit ratings on structured finance transactions incorporate an analysis of ESG credit factors when, in its opinion, they could affect the timely payment of interest or ultimate repayment of principal by the legal final maturity date. In our view, material ESG credit factors could have an adverse or positive impact on the credit quality of the securitized assets,...
