Extreme Weather Could Be the Next Big Threat to European Country Ratings
- Countries in southern Europe more exposed: Scope Ratings
- Leaders need to increase capacity to cope with weather risks
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Sovereign creditworthiness in Europe could diverge further unless governments in countries more vulnerable to climate change pay more attention to extreme weather risks, according to Scope Ratings.
Costs related to the weather are becoming more material for sovereign risk and this will accelerate as destructive events become increasingly frequent and severe, Scope analysts said in a report. That puts the most exposed countries -- typically in southern Europe -- at risk, especially as they are not spending the most to build resilience.