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.

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-)



comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center