Overall rankings To obtain the overall country risk score, Euromoney assigns a weighting to nine categories. These are political risk (25% weighting), economic performance (25%), debt indicators (10%), debt in default or rescheduled (10%), credit ratings (10%), access to bank finance (5%), access to short-term finance (5%), access to capital markets (5%), forfaiting (5%).
Political risk is defined for this exercise as 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 score, the less risky the country.
Economic performance data are based (1) on GNI (Atlas Method) figures per capita and (2) on results of the Euromoney poll of economic projections.
Debt indicators are calculated using these ratios from the World Bank’s Early Release Global Development Finance 2006: total debt stocks to GNP (A), debt service to exports (B); current account balance to GNP (C). Developing countries that do not report complete debt data get a score of zero.
Debt in default or rescheduled scores are based on the ratio of rescheduled debt to debt stocks, taken from the World Bank’s Early Release Global Development Finance 2006.