Uncertainty over the legal sanctity of eurozone jurisdictions for the smaller and more indebted member states is raising alarm bells for depositors and investors. But bondholders had been alerted to heighted transfer risk by Euromoney’s Country Risk Survey.
With the main ratings agencies differing in their assessments of credit risk, identifying countries ripe for an investment-grade rating is a complicated task. Euromoney’s Country Risk Survey highlights several borrowers with bright prospects, but only the Philippines is on the cusp of losing its junk-bond status.
Cyprus's deterioration in the rankings reflects the stark impact of the eurozone crisis on global sovereign risk. The eurozone’s problems had a more negative impact on global sovereign risk assessment than regime transition concerns in the Middle East, according to Euromoney Country Risk analysts.
Analysts cast an upbeat tone on Shinzo Abe’s policies as Euromoney Country Risk data reveal steady decade-long convergence.
Analysts contemplate the possibility of Cyprus leaving the euro due to the political standoff in Nicosia and Berlin.
Political tensions ease amid election result
In light of the political turmoil in Italy affecting bond yields across the eurozone periphery, sovereign default risks have resurfaced lately. At the heart of the concern is bank stability, writes Jeremy Weltman.
Indonesia’s growth miracle is expected to continue into 2013, but policy mismanagement and inflationary concerns pose risks to its credit profile.
Developed economies see rapid flux in risk score; emerging markets only moderate shifts, according to Euromoney Country Risk.
Analysts strike an upbeat note on the Indian budget, impressed with the government’s fiscal commitment.
Investor confidence will depend on the outcome of the next presidential election while oil prices pose most immediate risk to economy.
Sovereigns assigned with identical investment grades must be considered to have very similar, if not the same, levels of risk, otherwise those ratings would be a misleading indicator of creditworthiness, Jeremy Weltman reports.