Vietnam, the Bahamas, Egypt, Suriname, and other small island sovereigns are among the most exposed to the global rise in sea levels, Moody's says in a report, citing a range of studies.
Economic and social repercussions of lost income, damage to assets, loss of life, health issues, and forced migration from sudden events related to rising sea levels are immediate.
"Vulnerability to extreme events related to sea level rise can also undermine investment and heighten susceptibility to event risk, by hindering the ability of governments to borrow to rebuild, increasing financial risks, raising external pressures, and/or amplifying political risk as populations come under stress and institutional capacities are tested," Moody's says.
While some high-income economies, such as Japan and the Netherlands, are also exposed, many of them have countermeasures in place, and their credit strength makes them less likely to suffer a material credit impact.
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