Moody's Corporation on Monday indicated that sovereign credit ratings of several countries will be affected by the rising sea levels which pose a long-term threat of submersion and other natural disasters. According to Moody's latest report on global sea-level rise, Vietnam, Bahamas, Egypt, Suriname and other small islands are among the most exposed to the threat. Moody's in its report said that climate science suggests sea level will continue to rise for decades causing frequent and severe natural disasters such as storms, floods, and cyclones.
According to Moody's, immediate effects by the rising sea level will be felt as economic and social repercussions looming around will cause loss of life, loss in income, damage to assets and forced migration. Farming, tourism, and trade are all threatened in countries like Fiji, Philippines, and the Maldives, where people are at risk of submersion.
Some high-income economies like Japan and Netherlands are also facing the threat of rising sea level, however, they have their countermeasures in place to tackle the situation so they are not at that much of a risk, Moody's report stated. According to the credit rating agency, Japan and the Netherlands are unlikely to suffer from the threat of material credit impact. The extent of the risk will be determined by the pace of increase in the frequency of natural disasters.
The world is at risk from climate change and the latest report by Moody's report shows that it is not just the physical and personal losses that a country and its people suffer during natural disasters, but economic losses equally affect them indiscriminately. Natural disasters are causing havoc all over the world in the recent past. Australia is currently gripped by ravaging bushfires that have engulfed the country since September last year and it has caused not just loss of lives and properties but has also affected the country economically.