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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:35

Coface upgrades Estonia's country risk assessment, leaves assessment of Latvia, Lithuania unchanged

BC, Riga, 03.02.2017.Print version
International credit risk insurer Coface has upgraded Estonia’s assessment in its new country risk rating, but has left the assessment of the Latvian and Lithuanian business environment unchanged.

Estonia’s assessment has been raised to A2, Latvia’s assessment has been left at A4 and Lithuania’s at A3.


Coface bases its country risk assessment on several indicators, including the country’s political, economic and financial state, solvency of businesses and business climate trends. Countries’ risk assessment is measures on a seven-grade scale: A1 (very low), A2, A3, A4, B, C and D (very high). A positive or negative outlook can be added to each assessment.


Based on the country’s business improved climate and steady economic growth, Coface has raised Estonia’s assessment to A2, which means a low risk level and has also been given to large economies like the United States, France and Japan. Bulgaria’s assessment has been upgraded to A4 thanks to its economic recovery, and Spain’s risk assessment has been upgraded to A3 on the country’s economic growth and dropping number of insolvencies. Coface has also improved its assessment of Iceland, Serbia, Bosnia and Herzegovina, Cyprus and Argentina.


Meanwhile the assessment of Mexico (B), South Africa (C) and Jordan (C) has been downgraded.


“This year, the world economy will be dominated by political risks and uncertainties. As far as developed economies are concerned, most of the unanswered questions are about Europe. Our continent is bracing for several crucial election battles and waiting for the outcome of Brexit talks,” Cofare director in Latvia, Arnis Blumentals, said in a statement. “Political risks in the developing regions are also higher than before. In CIS countries, North Africa and the Middle East they are fostered by social discontent and increased security risks, especially in Russia and Turkey.”


Coface expects the global economy to grow by moderate 2.7% this year.






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