Credit Rating Agencies Could Face Heat In Potential ‘Climate Crisis,’ Report Says

A “climate crisis” could be coming to the world’s financial markets, and credit rating agencies like Standard & Poor’s and Moody’s may face part of the blame, according to a new report from the Center for International Environmental Law.

Failing to fully account for climate risks could inflate the credit ratings and financial value of companies that contribute to global warming, which could ultimately hurt investors and expose rating agencies to legal liability, the report said.

The center likened this potential “carbon bubble” to the credit bubble burst that helped spark the 2008 financial crisis.

“What happened after the credit ...