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Moody's Warns Cities to Address Climate Risks or Face Downgrades

  • Communities in Texas, Florida, other coastal states at risk
  • Credit rating agency says it’s adding climate to credit risks
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How to Hit the Brakes on Climate Change

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Coastal communities from Maine to California have been put on notice from one of the top credit rating agencies: Start preparing for climate change or risk losing access to cheap credit.

In a report to its clients Tuesday, Moody’s Investors Service Inc. explained how it incorporates climate change into its credit ratings for state and local bonds. If cities and states don’t deal with risks from surging seas or intense storms, they are at greater risk of default.