Redefining credit ratings for Small Island Developing States: a pathway to climate resilience and economic stability

Working paper
, 80 pages
PDF (4.08 MB)
22471IIED.pdf
Language:
English
Published: July 2024
Publisher(s):
ISBN: 9781837590964
Product code:22471IIED

The world’s Small Island Developing States (SIDS) are uniquely vulnerable to climate change impacts, particularly tropical storms, flooding, erosion and rising sea levels. As climate change progresses, the intensity and unpredictability of these events are increasing.

SIDS' growing climate vulnerability is compounded by inaccessible, opaque and inappropriate credit rating processes, which lead to higher borrowing costs and hinder the ability of SIDS to invest in resilience and sustainable development.

This paper suggests three ways to reform credit rating methodologies to ensure a fairer financial landscape for SIDS and to help foster a resilient, equitable future for these vulnerable nations.

Cite this publication

Bharadwaj, R., Karthikeyan, N., Kumar, B. and Mitchell, T. (2024). Redefining credit ratings for Small Island Developing States: a pathway to climate resilience and economic stability. IIED, London.
Available at https://www.iied.org/22471iied