DEFINITION of Euromoney Country Risk
Euromoney country risk is a measure of country investment risk based on the survey of expert opinion on the political and economic stability of 186 countries worldwide. It is published by Euromoney.
BREAKING DOWN Euromoney Country Risk
Euromoney country risk (ECR) scores are broken down into their economic, political and structural risk scores; as well as third sub-factor scores for 15 individual country risk variables. These include 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 and a score of 0 equals maximum risk. These are categorized 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 - Scores between 65 - 79.9 (equal to a credit rating of A- to AA)
ECR Tier 3 - Scores between 50 - 64.9 (equal to a credit rating of BB+ to A-)
ECR Tier 4 - Scores between 36 - 49.9 (equal to a credit rating of B- to BB+)
ECR Tier 5 - Scores between 0 - 35.9 (equal to a credit rating of D to B-)