Climate change could exert a growing influence on countries’ creditworthiness, according to a report by ratings agency Standard & Poor’s. The paper identified African and South Asian sovereigns as the most vulnerable to the economic impact of such change, whilst Australia, China, North America, Russia and Western Europe were the least vulnerable. The agency assessed vulnerability through both “exposure” and “resilience” to climate change, adding that resilience could be significantly strengthened through natural disaster insurance and savings funds. Moody has also identified the ratings implications of climate change as a “global mega-trend”.
Climate change could exert a growing influence on countries’ creditworthiness, according to a report by ratings agency Moody’s. The paper identified African and South Asian sovereigns as the most vulnerable to the economic impact of such change, whilst Australia, China, North America, Russia and Western Europe were the least vulnerable. The agency assessed vulnerability through both “exposure” and “resilience” to climate change, adding that resilience could be significantly strengthened through natural disaster insurance and savings funds. Standard & Poor has also identified the ratings implications of climate change as a “global mega-trend”.