Kenneth R. Szulczyk
leverage
Table 3. Coface’s Seven-Tier Rating of Countries for 2012
Country Rating Definition of Rating
Australia, Canada, Hong Kong, Japan, Luxembourg, New
Zealand, Norway, Singapore, Sweden, Switzerland, and
Taiwan
A1 Steady political and economic
environment has positive effects on an
already good payment record of
companies. Very small default probability.
Austria, Belgium, Chile, Denmark, Finland, France, Germany,
Kuwait, Malaysia, Malta, Netherlands, Qatar, South Korea,
and United States
A2 Default probability is still small even in
the case when one country's political and
economic environment or the payment
record of companies are not as good as
A1-rated countries.
Brazil, China, Czech Republic, Estonia, India, Israel,
Mauritius, Namibia, Oman, Poland, Slovakia, Slovenia, South
Africa, Thailand, Trinidad and Tobago, United Arab Emirates,
and United Kingdom
A3 Adverse political or economic
circumstances may lead to a worsening
payment record that is already lower than
the previous categories. Probability of a
payment default is still low.
Algeria, Bahrain, Botswana, Colombia, Costa Rica, Iceland,
Ireland, Italy, Lithuania, Mexico, Morocco, Panama, Peru,
Saudi Arabia, Spain, Tunisia, Turkey, and Uruguay
A4 An already patchy payment record could
be further worsened by a deteriorating
political and economic environment.
Nevertheless, the probability of a default is
still acceptable.
Benin, Bulgaria, Cape Verde, Croatia, Dominican Republic,
El Salvador, Gabon, Ghana, Hungary, Indonesia, Jordan,
Kazakhstan, Latvia, Papua New Guinea, Philippines, Portugal,
Romania, Russian Federation, Senegal, and Tanzania
B An unsteady political and economic
environment is likely to affect an already
poor payment record.Albania, Angola, Argentina, Armenia, Azerbaijan,
Bangladesh, Bolivia, Burkina Faso, Cameroon, Congo,
Cyprus, Djibouti, Ecuador, Egypt, Ethiopia, Georgia, Greece,
Guatemala, Honduras, Jamaica, Kenya, Lebanon, Macedonia,
Madagascar, Mauritania, Mongolia, Montenegro,
Mozambique, Nicaragua, Niger, Paraguay, Sao Tome and
Principe, Serbia, Sierra Leone, Sri Lanka, Timor-Leste, Togo,
Uganda, Venezuela, Viet Nam, and Zambia
C A very unsteady political and economic
environment could deteriorate an already
bad payment record.Afghanistan, Belarus, Bosnia and Herzegovina, Burundi,
Cambodia, Central African Republic, Chad, Congo, Cuba,
Equatorial Guinea, Eritrea, Guinea, Haiti, Iran, Iraq, Ivory
Coast, Kyrgyzstan, Lao, Liberia, Libya, Malawi, Mali,
Moldova, Myanmar, Nepal, Nigeria, Pakistan, Rwanda,
Sudan, Syria, Tajikistan, Turkmenistan, Ukraine, Uzbekistan,
Yemen, and Zimbabwe
D High-risk profile of a country's economic
and political environment will further
worsen further a generally very bad
payment record.Source: Coface. 2012. Rating Table. Available from
http://www.coface.com/CofacePortal/COM_en_EN/pages/home/risks_home/country_risks/rating_table?ge
oarea-country=&crating=&brating= (accessed on 10/16/2012)