This first of three papers in our series on materiality in credit ratings will examine the
materiality of credit ratings from an “implied materiality” and governance disclosure perspective.
In the second paper, we will explore the materiality of environmental, social, and governance
(ESG) factors in credit ratings’ methodologies and introduce the concept of “layered
materiality.” In the third paper, we will evaluate current and potential credit rating agency (CRA)
business models based on our analysis in the previous papers, and introduce the concept of
“institutionalized materiality.” Starting with this paper, and in the rest of the series, we will also
recommend how the credit rating model can be enhanced in the coming years to help build more
sustainable credit markets.