Red-State AGs Call Out Credit-Rating Companies Over ESG (2)

A group of state attorneys general wrote to the US Securities and Exchange Commission and major credit-rating firms, raising concerns about the use of environmental, social and governance factors in downgrade decisions.

The officials from 23 Republican-led states, which include Texas, Florida and Oklahoma, said Fitch Ratings, Moody’s Corp. and S&P Global Ratings have “undisclosed material conflicts of interest,” in part because they have pledged to a United Nations-backed organization to incorporate ESG into their analysis.

Oklahoma Attorney General Gentner Drummond said Tuesday in a statement that credit-rating companies have taken action against states and municipalities based on “speculative ...