Credit Ratings of Issuers of Green Debt Instruments
Purpose: The purpose of this article is to assess whether having a creditworthiness assessment from more than one credit rating agency by issuers of green debt instruments affects the number of issues and the average amount issued. This objective was achieved through the process of analysis of the ratings assigned by the rating agencies. Methodology: Due to the complexity of the data, mixed research methods were used such as observation, analysis, and inference. The study used data from Refinitiv Eikon. The credit ratings for the issuers, announced on the issue date, have been analyzed. The analysis covered debt instruments issued in all currencies in the years 2010-2020. The empirical research was carried out using the observation method, the analysis of source documents, and the method of deduction. Findings: In the analyzed period only 44.22% of issuers had credit ratings. The results of the conducted research indicate that the number of green debt instruments and the average issue amount were affected by the number of ratings given to the issuer. Because the largest number of green debt instruments and the highest average issue amount was held by green debt issuers with three ratings, there is a need for an additional creditworthiness assessment. Practical implications: The conclusions of this study can be used in the process of obtaining financing from capital markets on green projects. The content of the article concerns the conclusions from the analysis of the credit ratings of the issuers of green debt instruments. Originality/Value: The theoretical and empirical literature does not provide guidance on the impact of the issuer's credit rating on the success of issuing debt instruments, in particular green ones.