This study examines whether managerial ability impacts the positive association between environmental, social, and governance (ESG) performance and credit ratings. Using a sample of 4,266 U.S. publicly listed firms over the 2009-2020 period, we find that managerial ability magnifies the positive association between ESG and credit ratings. Our baseline results hold for endogeneity concerns. We also conduct cross-sectional analyses on several channels that might affect our baseline results, such as greenwashing, the information environment, and corporate governance. For greenwashing, we furnish compelling evidence that the interaction effect of managerial ability and ESG on credit ratings is stronger (weaker) for high (low) greenwashing firms. For the information environment, we find that the interaction effect is stronger (weaker) in cases of firms inferior (superior) information environments. Finally, for corporate governance, we find that the interaction effect is stronger (weaker) for firms with small (large) board size, high (low) board independence, CEO duality, and Big 4 auditor presence. Hence, we argue that greenwashing, the information environment, and corporate governance are major channels through which managerial ability and ESG performance impact credit ratings. Overall, this study improves our understanding of the crucial role of the joint impact of managerial ability and ESG performance on credit ratings and highlights various channel effects, particularly the controversial role of greenwashing.