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
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