Climate Risk? Credit Risk! Moody's Warns State And Local Governments

Earlier this week, Moody's Investors Service announced issuance of a report (payment required) warning that:

In other words, if you are an issuer of state or local bonds in an area likely to be impacted by climate trends, and particularly if you are likely to be subject to "climate shocks" that "have sharp, immediate and observable impacts on an issuer's infrastructure, economy and revenue base, and environment," be prepared for a downgrade, unless you can demonstrate that you have taken appropriate actions to mitigate those impacts – even if the impacts may not occur until "a number of years in the future."