Climate change will hurt emerging economies' credit ratings: Report
The rising global temperatures will hurt poorer countries and nations' credit ratings, a recent report released by Standard and Poor's Ratings Services suggests.
The international credit-rating firm warns that poorer nations with already low ratings will be the most affected by the climate change.
According to Huffington Post, emerging markets in Africa and Asia are the most at risk, with Bangladesh, Senegal and Vietnam placing at the bottom of S&P's ranking of vulnerable countries.
S&P wrote in the report that this is in part due to their reliance on agricultural production and employment, which can be vulnerable to shifting climate patterns and extreme weather events, but also due to their weaker capacity to absorb the financial cost.
The firm rates 128 sovereign governments on basis of their creditworthiness, taking both political and economic risks into account, while classifying climate change as a global mega-trend and estimates that countries around the world will suffer from the effects of warming weather, primarily in their economic growth and public finances, the report adds.
(Posted on 19-05-2014)