Mitigating disaster risks and beefing up safety measures can help companies score points with credit rating agency Standard & Poor's. According to the handbook published by the rating agency, it said although safety is not one of the determinants in the actual credit rating measures, having the appropriate program in place counts.

“We believe that a company's ability to effectively manage safety risks helps support a stronger credit profile,” S&P  said in a statement. Companies that are attentive to safety issues reflect corporate cultures that pay attention to risks and have mechanisms in place to mitigate them, said the agency. Alternatively, companies without those measures in place are sending signals to the rating agency that they could be putting their profits, business risk profile, and overall credit standing in danger.

The emphasis on safety measures is a positive factor for credit as it tells the rating agency that management is likely to enforce comprehensive policies that recognize companies' standards and tolerances of risks.

“By developing a deliberate, consistent, well-articulated, well-resourced, and integrated approach to risk management, a company can, in our view, promote a culture that effectively identifies and prudently mitigates safety risks,” it said.

Even in times of crisis, companies with well-developed safety programs are more likely to retain the credit rating. For example, S&P said nuclear plant and pipeline operators in the United States are likely to maintain their credit ratings despite high-profile accidents such as the nuclear disaster in Japan and the deadly gas pipe explosion in the suburbs of San Francisco.

The agency said the reason why they the operators are likely to maintain their ratings are due to the fact that these industries have a proven track record of addressing changes in business climate and previous accidents in a responsive manner while implementing necessary safety upgrades.

Overall factors such as strategic competence, operational effectiveness, and the ability to manage risks are weighed before S&P assigns credit ratings to companies. Stellar credit ratings are usually assigned to managements that demonstrate favorable risk-management qualities.

As part of its ratings' assignments, safety features are factored into S&P's ratings conclusion of an entity. Some of the determinants in their analysis include

Country Risk - assessment on risks involved in the countries where companies have business interests in and how safe it is for companies to operate there

Industry Risk - Safety-related risks specific to the industry

Operating efficiency and risk - safety risk related to fixed cost and companies' over-dependence on a small set of facilities such as nuclear energy plants 

Governance – safety culture of the enterprise that reflects management's prudence