Climate Risks and Preparedness to Impact Credit Analysis

Moody’s Investor Services Inc. recently issued a report describing how the effects of climate change will become a negative credit factor for issuers absent sufficient adaptation and mitigation strategies (subscription required to view full report).  Moody’s says that its analysts “weigh the impact of climate risks with states and municipalities’ preparedness and planning for these changes” and in cases of higher exposure to climate risks, its analysts will look at mitigation steps as well.