In this episode, Mudasar Chaudhry, Head of European Structured Finance Research, is joined by Richa Pandey, Analyst for European Structured Finance Research, and Christian Aufsatz, Managing Director and Head of European Structured Finance, to introduce Energy Performance Certificates (EPCs). We discussed if there is quantitative relationship between energy-efficiency improvements and lower probability of default for associated loans as well as if EPCs of residential properties can affect credit ratings. We also discussed some regulatory and disclosure requirements, which can further assist with the availability of consistent EPC data. While the speakers acknowledged the presence of some initial evidence of credit implications related to EPC factors, their current significance falls short of justifying their inclusion as pertinent for quantitative credit analysis.

Related Content: 

• Commentary - RMBS: Not All EPCs Created Equal: https://www.dbrsmorningstar.com/research/410781/rmbs-not-all-epcs-created-equal
• Commentary - Residential EPCs versus Credit Relevance: https://www.dbrsmorningstar.com/research/421101/residential-epcs-versus-credit-relevance

By downloading or listening to this podcast, you are agreeing to the DBRS Morningstar disclaimer and legal terms and conditions found at dbrsmorningstar.com/about/disclaimer and dbrsmorningstar.com/about/termsandconditions, including that the information provided is not investment, financial or other advice. DBRS Morningstar will not be liable for losses arising from your use of the information. Please note that the content of this podcast is intended for European audiences only.