Country risk refers to the risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks. This term is also sometimes referred to as political risk; however, country risk is a more general term that generally refers only to risks influencing all companies operating within or involved with a particular country.
Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries' comparative risk exposure. Credit rating agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing on political analysis. However, there is no consensus on methodology in assessing credit and political risks.
Score out of 100. Rank change to previous quarter.
Source: Euromoney Country Risk - published January 2018. [1]
The least-risky countries for investment. Ratings are further broken down into components including political risk, economic risk. Euromoney's quarterly country risk index “Country risk survey” monitors the political and economic stability of 185 sovereign countries. Results focus foremost on economics, specifically sovereign default risk and/or payment default risk for exporters (a.k.a. “trade credit” risk).
Partial list of credit risk rating agenciesedit
Fitch Ratings (U.S.)
Moody's (U.S.)
Standard & Poor's (U.S.)
CTRISKS (Greater China)
Partial list of political risk analysis organizationsedit
^[1] 2018-10-01 at the Wayback Machine: Survey which monitors the political and economic stability of 185 sovereign countries, according to ratings agencies and market experts. The information is compiled from Risk analysts; poll of economic projections; on GNI; World Bank’s Global Development Finance data; Moody’s Investors Service, Standard & Poor’s and Fitch IBCA; OECD consensus groups (source: ECGD); the US Exim Bank and Atradius UK; heads of debt syndicate and loan syndications; Atradius, London Forfaiting, Mezra Forfaiting and WestLB.
External linksedit
Downloadable country analysis and reportsedit
Coface Economic Studies
Credendo Country Risk Ratings
Euler Hermes Country Reports
Maplecroft
The PRS Group, Inc.
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country, risk, refers, risk, investing, lending, country, arising, from, possible, changes, business, environment, that, adversely, affect, operating, profits, value, assets, country, example, financial, factors, such, currency, controls, devaluation, regulato. Country risk refers to the risk of investing or lending in a country arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country For example financial factors such as currency controls devaluation or regulatory changes or stability factors such as mass riots civil war and other potential events contribute to companies operational risks This term is also sometimes referred to as political risk however country risk is a more general term that generally refers only to risks influencing all companies operating within or involved with a particular country Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries comparative risk exposure Credit rating agencies tend to use quantitative econometric models and focus on financial analysis whereas political risk providers tend to use qualitative methods focusing on political analysis However there is no consensus on methodology in assessing credit and political risks Contents 1 Ratings 2 Partial list of credit risk rating agencies 3 Partial list of political risk analysis organizations 4 See also 5 References 6 External links 6 1 Downloadable country analysis and reportsRatings editCountry risk rankings Q4 2017 The least risky countries for investment Rank Rank change Country Overall score 1 Singapore 88 6 2 Norway 87 66 3 Switzerland 87 64 4 Denmark 85 67 5 2 Sweden 85 59 6 1 Luxembourg 83 85 7 1 Netherlands 83 76 8 4 Finland 83 1 9 Canada 82 98 10 1 Australia 82 18 Score out of 100 Rank change to previous quarter Source Euromoney Country Risk published January 2018 1 The least risky countries for investment Ratings are further broken down into components including political risk economic risk Euromoney s quarterly country risk index Country risk survey monitors the political and economic stability of 185 sovereign countries Results focus foremost on economics specifically sovereign default risk and or payment default risk for exporters a k a trade credit risk Partial list of credit risk rating agencies editFitch Ratings U S Moody s U S Standard amp Poor s U S CTRISKS Greater China Partial list of political risk analysis organizations editEuromoney Country Risk ECR IHS Country Risk BMI Research Country Risk Solutions Economist Intelligence Unit Eurasia Group Maplecroft Oxford Analytica The PRS Group Inc See also editCredit rating agency National average salary Offshoring Workforce productivity List of countries by natural disaster riskReferences edit 1 Archived 2018 10 01 at the Wayback Machine Survey which monitors the political and economic stability of 185 sovereign countries according to ratings agencies and market experts The information is compiled from Risk analysts poll of economic projections on GNI World Bank s Global Development Finance data Moody s Investors Service Standard amp Poor s and Fitch IBCA OECD consensus groups source ECGD the US Exim Bank and Atradius UK heads of debt syndicate and loan syndications Atradius London Forfaiting Mezra Forfaiting and WestLB External links editDownloadable country analysis and reports edit Coface Economic Studies Credendo Country Risk Ratings The Benche Analysis amp Reports Euler Hermes Country Reports Maplecroft The PRS Group Inc nbsp This business term article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Country risk amp oldid 1218735081, wikipedia, wiki, book, books, library,
