Country Risk Euromoney Magazine

Definition of Euro-money country risk

Country risk, euromoney magazine is the measure of investment risk on the basis of poll of experts on political and economic stability of 186 countries of the world. It is published by euromoney.

Breaking down the ‘Country risk, euromoney magazine ‘

Country risk euromoney (ECR) assessments are divided into economic, political and structural risk assessment; and the third sub-factor scores for the 15 variables of country risk. They include political risks, economic performance, structural assessments, debt indicators, credit rating, access to Bank Finance and access to capital markets.

Each country receives application points on a 100-point scale, where 100 is the safest and 0 points is equal to the maximum risk. They are divided into five levels:

KKM tier 1 – Scores between 80 – 100 (this score can be equated to a credit rating of AA and above)
KKM tier 2 – Points from 65 – 79.9 (equal credit rating AA)
KKM tier 3 – Scores between 50 – 64.9 (equal to a credit rating of BB+ to b-)
KKM tier 4 – Scores from the 36 – 49.9 (equal credit rating from B – to BB+)
KKM 5 tier Points between 0 – 35.9 (equal to a credit rating from D to B)

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