Euromoney Country Risk


DEFINITION of 'Euromoney Country Risk '

An evaluation of investment risk based on the political and economic stability of (currently) 186 countries worldwide. Euromoney Country Risk (ECR) is a measure of risk derived from a forum that aggregates the opinions of over 400 invernational economists and policy analysts throughout the world. The Euromoney Country Risk assessment provides updated rankings for each country's investment risk by using 15 criteria, including political risk, economic performance, structural assessment, debt indicators, credit ratings, access to bank finance and access to capital markets. Each country receives an ECR score on a 100-point scale, where 100 is considered the safest (no risk) and a score of 0 (zero) equals maximum risk.

BREAKING DOWN 'Euromoney Country Risk '

Euromoney Country Risk categorizes the evaluated countries into five tiers:

ECR Tier 1 - Scores between 80 - 100 (this score can be equated to a credit rating of AA and higher)

ECR Tier 2 - cores between 65 - 79.9 (equal to a credit rating of A- to AA)

ECR Tier 3 - cores between 50 - 64.9 (equal to a credit rating of BB+ to A-)

ECR Tier 4 - cores between 36 - 49.9 (equal to a credit rating of B- to BB+)

ECR Tier 5 - cores between 0 - 35.9 (equal to a credit rating of D to B-)

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  3. Currency Risk

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  4. Risk

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    The excess return that investing in the stock market provides ...
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