Moody's Investors Service said Tuesday that companies with higher ratings have a higher proportion of women on their boards than those with lower ratings.
An analysis of 3,138 companies rated by Moody's found that women held an average of 29% of board seats at investment-grade companies (companies rated Baa or higher), an increase of 1 percentage point from 2023.
It also showed that women hold an average of 24 percent of board seats at speculative-grade companies (companies rated Ba or below), unchanged from last year.
The report found that companies based in developed countries have a higher correlation between board gender diversity and credit ratings, while companies in emerging markets do not.
In this survey, 24 companies were rated Aaa, 146 companies were rated Aa, 728 companies were rated A, 1,165 companies were rated Baa, 582 companies were rated Ba, 394 companies were rated B, 90 companies were rated Caa, and 9 companies were rated Ca. The company was targeted.
„The presence of women on boards and the potential diversity of opinion they bring supports good corporate governance and is positive for credit quality,“ Moody's said in the report. „It does not show a direct causal relationship with credit quality.“
Women hold 35% of board seats in European companies in this group, up from 33% in 2023.
North American companies followed suit, increasing the proportion of women on their boards to 30% from 29% last year. In Latin America, the Middle East, Africa and Asia Pacific, women hold less than 20 percent of board seats.
Service-oriented companies tend to have more diverse boards. In services and consumer sectors such as insurance, retail and business products, health care, pharmaceuticals, utilities, and consumer products, women hold nearly one-third of board seats.
The report, published by Moody's ahead of International Women's Day on March 8, says this primarily reflects the state of corporate boards in Europe and North America, with most of the companies Moody's surveyed in these areas is said to be located.