Moody’s Buyers Service on Tuesday mentioned higher-rated firms have a bigger proportion of ladies on their boards than lower-rated firms.
An evaluation of three,138 Moody’s-rated firms confirmed that ladies account for a median of 29 per cent of the board seats of investment-grade firms (these rated Baa and above), up one share level from 2023.
It additionally confirmed that on a median, girls account for twenty-four per cent of the board seats of speculative-grade firms (these rated Ba and under), which is unchanged from final 12 months.
Corporations primarily based in superior economies replicate a correlation between board gender range and credit score rankings, however these in rising markets don’t, it mentioned.
This research thought of 24 firms rated Aaa, 146 firms rated Aa, 728 firms rated A, 1,165 firms rated Baa, 582 firms rated Ba, 394 firms rated B, 90 firms rated Caa and 9 firms rated Ca.
“The presence of ladies on boards and the potential range of opinion they create helps good company governance, which is constructive for credit score high quality. The info don’t exhibit direct causation between gender range and credit score high quality,” Moody’s mentioned in a report.
Ladies maintain 35 per cent of the board seats of European firms within the cohort, up from 33 per cent in 2023.
North American firms comply with carefully behind, with feminine illustration on boards rising to 30 per cent from 29 per cent final 12 months. Ladies account for lower than 20 per cent of board seats in Latin America, the Center East, Africa and Asia-Pacific.
Service oriented firms are likely to have extra numerous boards. Ladies maintain almost one-third of the board seats in service and shopper sectors, reminiscent of insurance coverage, retail and enterprise merchandise, healthcare, prescribed drugs, utilities and shopper merchandise.
That is largely reflective of company boards in Europe and North America, the place a lot of the firms Moody’s examined in these sectors are situated, it mentioned within the report launched forward of Worldwide Ladies’s Day on March 8.
