Country risk poll September 2007: Positive feeling
Despite the fallout from US sub-prime woes, analysts are optimistic about prospects for the global economy, as commodities remain strong. But the US drops out of the top five in Euromoney’s latest country risk rankings. Oliver Hexter reports.
The above tables take into account scores for each country's:
Debt in default or rescheduled
Country credit ratings
Access to bank finance
Access to short-term finance
Access to capital markets
Discount on forfaiting
(click on any of the above terms to view the appropriate rating methodology)
Country risk and the global economy
OVERALL RATINGS IN this September’s country risk survey reflect increased optimism among analysts polled by Euromoney, despite fears of a worldwide economic slowdown, and concerns related to sub-prime mortgages in the US. The average rating has increased to 50.29, an improvement of 2.41.
Commodity prices are expected to remain strong and continue to boost figures for many countries. For example, in Nigeria violence in the Niger delta is still a risk, but a positive move up the rankings is likely because of increases in oil production and prices.
Average political risk ratings, assessed in a survey of 35 experts, have not shown an increase corresponding with the overall results, and many countries in Latin America, eastern Europe and Asia have divisive internal politics that will discourage investors.