To obtain the overall country risk score, Euromoney assigns a
weighting to the nine categories listed below. The best underlying
value per category achieves the full weighting (25, 10 or 5); the
worst scores zero and all other values are calculated relative to
these two. The formula used is the following: A - (A / (B-C)) x
(D-C), where A = category weighting; B = lowest value* in range; C
= highest value* in range, D = individual value.
*NB For debt indicators and debt in default, B and C are reversed
in the formula, as the lowest score receives the full weighting and
the highest gets zero.
? Political risk (25% weighting): the risk of non-payment or
non-servicing of payment for goods or services, loans,
trade-related finance and dividends, and the non-repatriation of
capital. Risk analysts give each country a score between 10 and
zero - the higher, the better. This does not reflect the
creditworthiness of individual counterparties....
