Euromoney Country Risk

AAA

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.

INVESTOPEDIA EXPLAINS '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-)

RELATED TERMS
  1. Capital Markets

    Markets for buying and selling equity and debt instruments. . ...
  2. Credit Rating

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

    A collection of risks associated with investing in a foreign ...
  4. Risk

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

    A form of risk that arises from the change in price of one currency ...
  6. Losses and Loss-Adjustment Expense

    The portion of an insurance company’s reserves set aside for ...
Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. Evaluating Country Risk For International ...
    Options & Futures

    Evaluating Country Risk For International ...

  3. 3 Ways You Can Evaluate Country Risk
    Economics

    3 Ways You Can Evaluate Country Risk

  4. Finding Fortune In Foreign-Stock ETFs
    Mutual Funds & ETFs

    Finding Fortune In Foreign-Stock ETFs

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center