The sovereign credit ratings continued dropping following extreme weather events and economic struggles.
Sovereign Credit Ratings Continue Dropping Due to Extreme Weather Events and Economic Challenges
The sovereign credit ratings continued dropping due to extreme weather events and different economic challenges, wherein the sovereign credit ratings are expected to drop even more for 59 nations in the future, leading them to lose billions.
According to a report published in Zenger, the sovereign credit ratings have been adjusted to include climate change and extreme weather events into account, which are expected to downgrade the sovereign credit ratings due to a lack of efforts to combat climate change across all nations.
With the continuous economic struggles, sovereign credit ratings have also dropped while the national debt continues to increase, especially in developing nations that already reported low sovereign credit ratings because of the negative impact of climate change and other challenges after extreme weather events.
Continuous Dropping of Sovereign Credit Ratings Will Be Avoided if Emissions are Reduced
Following the recent reports about sovereign credit ratings, experts claimed that the continuous dropping of sovereign credit ratings could be avoided if emissions are reduced, as it will lessen the impact of climate change, WVNews reported.
A study conducted using artificial intelligence predicted that if climate change continues to impact the world, there will be over 100 countries that will end up having sovereign credit ratings downgraded further.