Climate Change Will Likely Test The Resilience Of Corporates' Creditworthiness To Natural Catastrophes


Authors
Miroslav Petkov, Michael Wilkins and Xenia Xie

Research Organisation
Standard & Poor's

Report Date
April 20, 2015

Document summary

While recent history shows that natural catastrophes may have not been a major rating factor on corporate credit quality in the past, their effect in the future may increase considerably if, as scientific evidence suggests, we experience more frequent and extreme climatic events. If such extreme events were to occur, companies' existing insurance and overall disaster risk management measures could, in Standard & Poor's Ratings Services' opinion, become considerably less effective. Therefore, improvements in companies' disclosure about their exposure to natural catastrophes is becoming more relevant to Standard & Poor's ratings analysis.
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