{"id":31978,"date":"2023-08-08T22:15:14","date_gmt":"2023-08-08T16:45:14","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=31978"},"modified":"2023-08-08T22:15:14","modified_gmt":"2023-08-08T16:45:14","slug":"first-climate-adjusted-sovereign-credit-rating","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/first-climate-adjusted-sovereign-credit-rating","title":{"rendered":"First Climate-adjusted Sovereign Credit Rating"},"content":{"rendered":"<p><b>Context:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new research claimed to be the <\/span><b>first climate-adjusted sovereign credit rating<\/b><span style=\"font-weight: 400;\"> has found <\/span><b>links between the creditworthiness of countries and the impact of climate change<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>More about the news:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A team of economists at UEA and Cambridge used artificial intelligence (AI) to <\/span><b>simulate the economic effects of climate change<\/b><span style=\"font-weight: 400;\"> on Standard and Poor\u2019s (S&#038;P) ratings for 108 countries over the next 10, 30 and 50 years and by the end of the century.<\/span><\/li>\n<\/ul>\n<p><b>Key Highlights from the Research:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If emissions aren&#8217;t reduced, around 59 countries might experience a<\/span><b> decline in their sovereign credit ratings, including India.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over the next decade, there could be a <\/span><b>rise in global corporate debt.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to research from the University of East Anglia and the University of Cambridge, countries like <\/span><b>Chile, Indonesia, China, and India could see a two-notch drop<\/b><span style=\"font-weight: 400;\">, while the United States, Canada, and the United Kingdom could also experience a two-notch or one-notch reduction.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The results showed that many national economies can expect downgrades unless action is taken to reduce emissions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study suggested <\/span><b>adherence to the Paris Climate Agreement<\/b><span style=\"font-weight: 400;\">, with temperatures held under a two-degree rise, would have <\/span><b>no short-term impact on sovereign credit ratings<\/b><span style=\"font-weight: 400;\"> and <\/span><b>keep the long-term effects to a minimum.\u00a0<\/b><\/li>\n<\/ul>\n<p><b>Significance:<\/b><span style=\"font-weight: 400;\"> The research contributes to bridging the gap between climate science and real-world financial indicators.\u00a0<\/span><\/p>\n<p><b>Sovereign Credit Rating:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sovereign credit rating is an <\/span><b>independent assessment of the creditworthiness of a country or sovereign entity.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Significance: It<\/b><span style=\"font-weight: 400;\"> can <\/span><b>give investors insights into the level of risk associated<\/b><span style=\"font-weight: 400;\"> with investing in the debt of a particular country, including any political risk.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">At the request of the country, a <\/span><b>credit rating agency will evaluate its economic and political environment to assign it a rating<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Various entities involved in credit rating in India include <\/span><b>CRISIL, ICRA, Fitch Ratings<\/b><span style=\"font-weight: 400;\">, etc.<\/span><\/li>\n<\/ul>\n<p><b>News Source:<\/b> <a href=\"https:\/\/www.downtoearth.org.in\/news\/climate-change\/climate-change-could-hit-india-58-other-nations-credit-ratings-91048\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">DTE<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context:\u00a0 A new research claimed to be the first climate-adjusted sovereign credit rating has found links between the creditworthiness of countries and the impact of climate change.\u00a0 More about the news: A team of economists at UEA and Cambridge used artificial intelligence (AI) to simulate the economic effects of climate change on Standard and Poor\u2019s&hellip; <a class=\"more-link\" href=\"https:\/\/pwonlyias.com\/stage\/current-affairs\/first-climate-adjusted-sovereign-credit-rating\">Continue reading <span class=\"screen-reader-text\">First Climate-adjusted Sovereign Credit Rating<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[3290],"paper-wise":[2089],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/31978"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=31978"}],"version-history":[{"count":0,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/31978\/revisions"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=31978"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=31978"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=31978"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=31978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}