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Global Credit Research - 30 Mar 2016
New York, March 30, 2016 -- Moody's Investors Service has published its Green Bonds Assessment (GBA)
methodology, which offers a consistent, standardized and transparent
framework for evaluating an issuer's approach for managing,
administering, and allocating proceeds to and reporting on environmental
projects financed by green bonds across various security types globally.
Specifically, the GBA methodology explains how Moody's evaluates
a green bond based on five key factors: (i) organization,
(ii) use of proceeds, (iii) disclosure on the use of proceeds,
(iv) management of proceeds, and (v) ongoing reporting and disclosure
on environmental projects financed or refinanced with such securities.
Moody's defines green bonds as fixed-income securities --
both taxable and tax-exempt -- that raise capital for use
in projects or activities with environmental benefits.
The methodology is intended to inform issuers, investors,
financial intermediaries and other interested market participants about
Moody's green bond assessment definitions and symbols, assessment
process, information sources, the key factors and sub-factors,
and how these are scored to derive a green bond assessment.
The methodology's publication follows a Request for Comment (RFC)
period that ran between 14 January and 12 February 2016. This published
version incorporates a number of revisions that reflect the feedback received.
The GBA methodology may be used to assess bonds issued by corporations,
financial institutions, governments, supranational organizations,
municipal bodies as well as other entities. Additionally,
the methodology may be used to perform an assessment on project finance
and structured finance transactions, such as asset backed securities.
As part of the assessment process, Moody's will score each
bond issue on five key factors (along with their respective sub-factors),
weighted to reflect their relative importance, to arrive at a composite
The composite grade, in turn, will inform an overall assessment
that runs from GB1 (Excellent) to GB5 (Poor).
The initial assessment of green bonds and their use of proceeds involves
an examination of relevant governing documentation, regulatory filings,
issuer reports and presentations, if any, and other publicly
Information derived from these sources is complemented by direct engagement
and dialogue with the issuer. GBAs are unmonitored but are expected
to refresh annually based on receipt of an annual "use of proceeds"
report from the issuer.
Moody's "Green Bond Assessment Methodology" is available at:
NOTE TO JOURNALISTS ONLY: For more information, please call
one of our global press information hotlines: New York +1-212-553-0376,
London +44-20-7772-5456, Tokyo +813-5408-4110,
Hong Kong +852-3758-1350, Sydney +61-2-9270-8141,
Mexico City 001-888-779-5833, São Paulo
0800-891-2518, or Buenos Aires 0800-666-3506.
You can also email us at email@example.com or visit our
web site at www.moodys.com.
This publication does not announce a credit rating action. For
any credit ratings referenced in this publication, please see the
ratings tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
Chief Credit Officer
Financial Institutions Group
Moody's publishes methodology on Green Bonds Assessment
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
No Related Data.
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