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-)

  1. Capital Markets

    Capital markets are markets for buying and selling equity and ...
  2. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  3. Currency Risk

    A form of risk that arises from the change in price of one currency ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Country Risk

    A collection of risks associated with investing in a foreign ...
  6. Equity Risk Premium

    The excess return that investing in the stock market provides ...
Related Articles
  1. Insurance

    Investing Beyond Your Borders

    Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
  2. Options & Futures

    Evaluating Country Risk For International Investing

    Investing overseas begins with determining the risk of the country's investment climate.
  3. Economics

    3 Ways You Can Evaluate Country Risk

    Diversifying your portfolio includes looking beyond your borders. Here are a few ways to analyze risk when investing abroad.
  4. Mutual Funds & ETFs

    Finding Fortune In Foreign-Stock ETFs

    Think beyond your borders to reduce the impact of local market downturns.
  5. Retirement

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
  6. Entrepreneurship

    Creating a Risk Management Plan for Your Small Business

    Learn how a complete risk management plan can minimize or eliminate your financial exposure through insurance and prevention solutions.
  7. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  8. Investing Basics

    5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Entrepreneurship

    Identifying And Managing Business Risks

    There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.
  10. Active Trading

    10 Steps To Building A Winning Trading Plan

    It's impossible to avoid disaster without trading rules - make sure you know how to devise them for yourself.
  1. What is the difference between a global fund and an international fund?

    In the English language, "global" and "international" tend to be used interchangeably - hence the confusion in the investing ... Read Full Answer >>
  2. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  3. How do mutual funds work in India?

    Mutual funds in India work in much the same way as mutual funds in the United States. Like their American counterparts, Indian ... Read Full Answer >>
  4. Why are mutual funds subject to market risk?

    Like all securities, mutual funds are subject to market, or systematic, risk. This is because there is no way to predict ... Read Full Answer >>
  5. Why have mutual funds become so popular?

    Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic ... Read Full Answer >>
  6. Can your car insurance company check your driving record?

    While your auto insurance company cannot pull your full motor vehicle report, or MVR, it does pull a record summary that ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  2. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  3. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  4. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
Trading Center