Country Risk Rating
As the world leader in trade credit insurance, the Euler Hermes Group continously monitors risk across the globe.
The group has developed a methodology that combines both political and economic analysis when looking at developing and emerging economies. This produces country rankings in six categories, from the safest (AA) to potentially the most risky (D).
Euler Hermes Rating - AA
Number of countries - 34
% of world GDP 2006 - 64.3%
Strong economic structure and policy framework (industrialised economy or similar). Negligible risk of external liquidity crisis. Generally sound business environment. Negligible risk of political instability. Strong capacity to respond to economic crisis.
Euler Hermes Rating - A
Number of countries - 39
% of world GDP 2006 - 1.5%
Economic structure and policy framework generally adequate. Very low risk of external liquidity crisis. Generally sound business environment. Negligible risk of political instability. Good capacity to respond to economic crisis.
Euler Hermes Rating - BB
Number of countries - 22
% of world GDP 2006 - 9.4%
Some signs of structural and policy weakness. External liquidity adequate, some weaknesses in business environment and/or identified but moderate risk of political instability and adequate capacity to respond to economic crisis.
Euler Hermes Rating - B
Number of countries - 17
% of world GDP 2006 - 12.6%
A range of structural and policy weaknesses and/or vulnerable external liquidity position, some weaknesses in business environment and/or seriousweaknesses in political framework with higher risk of political instability and limited capacity to respond to economic crisis.
Euler Hermes Rating - C
Number of countries - 46
% of world GDP 2006 - 7.2%
Deep structural weaknesses and/or strong policy measures required and/or external liquidity risk is high, serious weaknesses in business environment and/or serious weaknesses in political framework with higher risk of political instability and little capacity to respond to economic crisis.
Euler Hermes Rating - D
Number of countries - 83
% of world GDP 2006 - 5.0%
Structurally very weak and policy ineffective and/or current/imminent external liquidity crisis, serious weakness in business environment and/or actual or very high risk of political instability. No capacity to respond to economic crisis.
Euler Hermes Group
