Wednesday, July 28, 2021
Home Middle Column 'Highly speculative' report: 'Climate change' a threat to Bermuda's credit rating

‘Highly speculative’ report: ‘Climate change’ a threat to Bermuda’s credit rating

-

http://mobile.royalgazette.com/article/20160104/BUSINESS/160109966

Climate change could put Bermuda at risk of greater economic damage and dent its sovereign credit rating more than many countries and islands.

That is the finding of a speculative report by Standard & Poor’s Ratings Services.

Using direct damage data from Swiss Re, the agency estimated the possible adverse effect of climate change on 38 countries.

It based its measurements on the expectation of a once-in-250-year natural catastrophe event striking, and the impact being exacerbated a further 20 per cent to represent the magnified additional damage expected to be inflicted due to climate change.

Projected out 35 years to 2050, the report suggests the costs associated with a once-in-250-year hurricane would increase Bermuda Government’s debt by 16 per cent of gross domestic product. That assessment jumps a further 8 per cent once the additional damaging impact of climate change is factored in.

Bermuda’s sovereign credit rating would be negatively impacted by 1.48 notches by such a catastrophic hurricane, and by a further 0.79 as a result of the added impact from climate change.

That places Bermuda squarely among countries and islands most likely to feel significant pressure on their rating.

While the report is highly speculative in nature, and is the first such survey undertaken by S&P, its findings give an interesting overview of potential future scenarios.

– See more at: http://mobile.royalgazette.com/article/20160104/BUSINESS/160109966#sthash.j7HAA1XI.dpuf

- Advertisment -

Related Articles

China Claims Global Climate Leadership, Slams US Republicans for Obstruction

The Global Times, a mouthpiece of the Chinese Communist Party, has criticised US Republicans for not joining Biden's effort to support Chinese climate leadership.

New Study Finds East And West Antarctica Have Profoundly Cooled By -2.8°C And -1.68°C Since 1979

From 1979-2018 East Antarctica cooled -0.70°C/decade (-2.8°C), West Antarctica cooled -0.42°C/decade (-1.68°C), but the Antarctic Peninsula warmed 0.18°C/decade (0.72°C). Thus, as a whole, the...

US LNG Exports Hit New Record High!

Guest “And the year is only half over!” by David Middleton JULY 27, 2021U.S. liquefied natural gas exports grew to record highs in the...