| Headline: Analysts see little sign of sovereign risk contagion - Methodology Source: Euromoney Date: September 2001 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. • Economic performance (25%): based (1) on GNP* figures per capita and (2) on results of a Euromoney poll of economic projections, where each country’s score is obtained from average projections for 2001 and 2002. |