Mitigating disaster risks and beefing up safety measures can help companies score points with credit rating agency Standard & Poor’s. According to the handbook published by the rating agency, it said although safety is not one of the determinants in the actual credit rating measures, having the appropriate program in place counts.
“We believe that a company’s ability to effectively manage safety risks helps support a stronger credit profile,” S&P said in a statement. Companies that are attentive to safety issues reflect corporate cultures that pay attention to risks and have mechanisms in place to mitigate them, said the agency. Alternatively, companies without those measures in place are sending signals to the rating agency that they could be putting their profits, business risk profile, and overall credit standing in danger.
