Country risk March 2005: As spreads tighten the world gets riskier

Country risk index: The latest Euromoney country risk survey reflects a slight downgrade in the assessment of overall risk levels despite sovereign upgrades from rating agencies.

For historical country risk data please visit the Euromoney Country risk website

Methodology

IN A YEAR in which sovereign credit ratings upgrades continued to outpace sovereign downgrades, according to Standard & Poor’s, there has also been a further narrowing of spreads in emerging countries’ issues or credits. S&P upgraded 28 sovereigns in 2004 and lowered the rating on only seven. This upward trend looks to continue into the first part of 2005.

In our September 2004 survey we reported an aggregate upward shift in the total absolute risk score for all 185 countries rated of 4.5%.

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