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. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all ...
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

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center