City Bonds May Be Hit by Climate Change. Moody's Can Now See How
- Rating company to gauge how cities tackle environmental risks
- Cities may see downgrades if plans fall too far from average
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For Moody’s Investors Service, it’s no longer enough for cities to have plans addressing their risks from climate change. The company’s municipal-bond analysts, armed with data, will soon determine how those strategies compare with others -- and may change their credit ratings as a result.
Moody’s in July purchased a majority stake in climate research firm Four Twenty Seven Inc., which provides information the company is now using to evaluate how well local governments are girding for threats such as floods, fires and storms.