A coalition of state financial officials is demanding answers from Wall Street’s most powerful credit rating agencies after raising serious concerns about how American energy producers are evaluated compared with Chinese state-owned oil companies.
The controversy centers on environmental, social, and governance (ESG) considerations, which critics argue have allowed political priorities to influence financial assessments that should focus primarily on economic risk.
Now, financial officers representing 22 states are challenging Moody’s, Fitch Ratings, and S&P Global Ratings over what they describe as inconsistent standards, questionable transparency, and potentially unfair treatment of American businesses.
