Sovereign Risk Solutions

Assess and compare sovereign risk over the short and medium term

Whether you are in banking, insurance, portfolio management, or a company engaged in cross-border trade, our Sovereign Risk solution enables you to compare and assess credit risks and non-payments risk for 206 Sovereigns.

Assess short- and medium-term credit worthiness and trade credit risk using our transparent sovereign risk ratings. Our comprehensive service provides robust analysis of our own independent risk ratings as well as commentary on the ratings of the ratings agencies of record, as well as a consensus rating. Access to our team of risk experts as well as Headline Analysis articles allow you to stay ahead of emerging risks.

This comprehensive tool helps you to:

Anticipate emerging credit risks
Establish and update country exposure limits
Assess the difference in risk across the short and medium term
Conduct rating due diligence

Visualize and analyze risk rating changes to assess stability and creditworthiness

What's Included

Data and Analysis

Debt statistics & Financial Ratio Data
Excel spreadsheets with detailed country balance sheet and debt figures, including external liquidity and solvency ratios from 1999 to the present and a five-year forecast. Our financial risk metrics are derived from this detailed forecast of each country’s external finances, relevant domestic finances and key macroeconomic growth indicators.

Sovereign Risk Table
Calculations of each country's creditworthiness, based on financial, economic, and political attributes are numerical scores on a zero-to-100 scale corresponding to the probability of default. Our short-term (1 year) rating focus more on liquidity measures, where the medium-term (5 year) rating also takes into account solvency ratios as well as qualitative political, economic and governance impacts.

Sovereign Risk Report
Detailed country reports with scoring for all the key liquidity and solvency ratios for each of the 206 countries we rate.

Sovereign Risk Ratings
Short (1 year) - and medium-term (5 year) risk ratings for each country. Ratings are updated on a quarterly basis with our latest economic forecast data.

Peer Group Rankings
Tool to rank countries by sovereign risk within specific peer groups

Comparative Ratings Presentation
Our ratings vs. those of three major credit rating agencies, culminating in a "consensus rating" for short- and medium-term horizons

Headline Analysis
Daily coverage of key financial risk events that impact a countries sovereign debt situation (trade, debt data). Systematic coverage of the major credit rating agencies ratings changes with detailed comparison to our ratings.

Methodology

The ratings are generated in a systematic and consistent manner using a comprehensive and transparent analytical model based on the actual experiences of global lending institutions
The risk ratings are numeric scores on a zero-to-100 scale corresponding to the probability of default.
The sovereign default risk scores are based on a detailed assessment of each country’s key liquidity and solvency ratios.
Financial risk metrics are derived from country spreadsheets containing highly detailed information on each country’s external finances, relevant domestic finances, and key macroeconomic indicators.
In the short-term analytical model, the liquidity risk metrics play the dominant role, whereas in the medium-term model the assessment also takes into account solvency ratios and qualitative country attributes, such as each country’s economic and political structures and policy performance.
The macroeconomic inputs and assumptions are taken directly from our quarterly country databanks and macroeconomic forecasts.

Delivery platforms

Connect: Maximize your subscription content with Connect – our state-of-the-art business intelligence platform

Sovereign risk review provides assessment of all changes to ratings
Access to detailed country scoring allows for deeper understanding of fundamentals impacting credit worthiness (debt load, interested payments)
Risk and ratings table and map for comparison of ratings by country
Download forecast and historical data behind the ratings with our Data Browser tool, refreshable spreadsheets allow clients to update data easily

Member Privileges

Analyst Access
On-demand access to our team of sovereign risk experts

Country Risk Webcasts
Webcasts on key events and trends, with Q&A delivered by leading experts