Sovereign Credit Ratings
Further information: List of countries by credit ratingA sovereign credit rating is the credit rating of a sovereign entity, i.e., a national government. The sovereign credit rating indicates the risk level of the investing environment of a country and is used by investors looking to invest abroad. It takes political risk into account
| Rank | Previous | Country | Overall score |
|---|---|---|---|
| 1 | 1 | Norway | 90.37 |
| 2 | 2 | Switzerland | 88.83 |
| 3 | 3 | Singapore | 88.03 |
| 4 | 5 | Luxembourg | 87.90 |
| 5 | 4 | Sweden | 86.79 |
| 6 | 5 | Finland | 84.30 |
| 7 | 7 | Canada | 84.26 |
| 8 | 8 | Denmark | 83.52 |
| 9 | 9 | Netherlands | 83.07 |
| 10 | 7 | Germany | 82.24 |
The table shows the ten least-risky countries for investment as of June 2012. Ratings are further broken down into components including political risk, economic risk. Euromoney's bi-annual country risk index monitors the political and economic stability of 185 sovereign countries. Results focus foremost on economics, specifically sovereign default risk and/or payment default risk for exporters (a.k.a. "trade credit" risk).
A. M. Best defines "country risk" as the risk that country-specific factors could adversely affect an insurer's ability to meet its financial obligations.
Read more about this topic: Credit Rating
Famous quotes containing the words sovereign and/or credit:
“The obligation of subjects to the sovereign is understood to last as long, and no longer, than the power lasteth by which he is able to protect them.”
—Thomas Hobbes (1588–1679)
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