Climate Change Puts Heat On Asia, Caribbean Ratings: S&P

Paris, France (AFP) – Climate change will put current credit ratings on sovereign debt at risk, especially in southeast Asia and the Caribbean, as the likelihood of natural disasters rises along with temperatures, rating agency Standard and Poor’s said on Thursday.

“Our simulations indicate that climate change-related natural hazards can harm sovereign ratings,” Standard and Poor’s analyst Marko Mrsnik said in a statement.

Credit risk from natural catastrophes, especially cyclones, storms and floods, was set to rise by 20 per cent on average, Standard and Poor’s said.

This is the first time that the agency has put a figure on the impact of climate change on governments’ creditworthiness.

It singled out risk from cyclones in the Bahamas, Barbados, the Dominican Republic, Jamaica and Vietnam, and floods in Thailand.

The cost of rebuilding in the wake of disasters was expected to put a major strain on the budgets of affected countries, Standard and Poor’s said

 

 

 

 

Re-posted from: http://www.jamaicaobserver.com/latestnews/Climate-change-puts-heat-on-Asia–Caribbean-ratings–S-P

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