Oklahoma AG Raises Concerns on ESG Policies of Rating Agencies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
0mins
Oklahoma Attorney General Gentner Drummond announced the state, along with 22 other state attorneys general, sent a letter last week to Fitch Ratings, Moody's (MCO), S&P Global (SPGI) and the Securities and Exchange Commission outlining concerns about the agencies' "pledge to systematically incorporate ESG considerations into credit ratings." The states said, "In considering highly speculative ESG predictions and goals, the agencies have downgraded fossil-fuel companies, and their policies threaten to undermine states' bond ratings as well." Joining Drummond in the coalition are the attorneys general of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Iowa, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, South Carolina, Texas, Utah, West Virginia and Wyoming.
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Analyst Views on MCO
Wall Street analysts forecast MCO stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 457.100
Low
526.00
Averages
586.50
High
660.00
Current: 457.100
Low
526.00
Averages
586.50
High
660.00
About MCO
Moody's Corporation is a global provider of integrated perspectives on risk that empowers organizations and investors to make decisions. The Company's segments include Moody's Analytics (MA) and Moody's Investors Service (MIS). MA segment comprises three interconnected businesses: Research & Insights, which provides credit research, economic analysis and scenario modeling used in investment and risk decisions; Data & Information, which is powered by the database on companies and credit and serves as a critical input to financial analysis and AI model development/risk assessment, and Decision Solutions, a set of cloud-based platforms embedding Moody's data and analytics directly into regulated banking, insurance and KYC workflows. MIS segment publishes credit ratings and provides assessment services on a range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, and structured finance securities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Tariff Impact: The global 10% tariff imposed by Trump has raised the average tax on U.S. imports to 11.8%, the highest since the 1940s, with studies indicating that U.S. companies and consumers bear most of the burden, directly hindering economic growth, as evidenced by last year's GDP growth of only 2% and a mere 116,000 jobs added.
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- Shareholder Meeting Scale: This shareholder meeting is the largest gathering in corporate America, attracting a significant number of investors, highlighting Berkshire's importance in corporate governance and shareholder relations, especially during the transition period following Buffett's retirement.
- Leadership Change Impact: The appointment of Greg Abel as the new CEO signifies a shift in Berkshire's leadership, expected to influence the company's strategic direction and investment decisions, particularly as Abel continues to drive long-term growth strategies under Buffett's guidance.
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- Drug Potential and Clinical Progress: Duvakitug, a monoclonal antibody targeting TL1A, is currently undergoing Phase 3 clinical trials for ulcerative colitis and Crohn's disease, with promising Phase 2 results showing durable efficacy over 44 weeks, indicating a broad market potential.
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- Opportunities and Risks for Investors: Blackstone's investment not only provides Teva with financial support but may also yield milestone payments and low single-digit royalties on global sales, suggesting that while risk-averse investors might hesitate, aggressive investors could find significant value in Teva, especially if duvakitug succeeds as anticipated.
See More
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- Significant Investment: Blackstone Life Sciences has committed $400 million to Teva Pharmaceuticals to support the development of its autoimmune disease drug, duvakitug, reflecting confidence in Teva's future and showcasing Blackstone's strategic positioning in the biopharmaceutical sector.
- Clinical Trial Progress: Duvakitug is currently undergoing Phase 3 clinical trials aimed at treating ulcerative colitis and Crohn's disease, with promising Phase 2 results indicating durable efficacy over 44 weeks, suggesting substantial market potential and the possibility of becoming a best-in-class therapy.
- Credit Rating Upgrade: Following Blackstone's investment, credit rating agencies have begun to recognize Teva's turnaround, with S&P Global upgrading Teva's credit rating from BB to BB+ in December 2025, reflecting a stable outlook and market optimism about its future development.
- Positive Market Outlook: Analysts are generally bullish on Teva, with 12 out of 13 surveyed analysts rating the stock as a
See More
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- ESG Concerns Raised: Oklahoma Attorney General Gentner Drummond, along with 22 state attorneys general, sent a letter to Fitch, S&P, and Moody's demanding explanations for their use of environmental, social, and governance (ESG) factors in credit ratings, arguing this could undermine state bond ratings.
- Potential Conflict of Interest: The Attorney General highlighted that the agencies' reliance on speculative ESG predictions may lead to downgrades of fossil fuel companies, which could drive demand for their ESG consulting services, creating an undisclosed conflict of interest.
- Call for Transparency: The letter requests that rating agencies explain ESG-driven downgrades, withdraw or disclose ESG commitments, revise sector-specific methodologies, eliminate or disclose ESG consulting conflicts, and certify an internal controls review.
- Market Reaction: Following the letter's release, shares of S&P Global (SPGI) rose by 1.0% and Moody's (MCO) gained 0.7%, indicating market interest in the agencies' responses and the implications of the letter.
See More
