Have the risks associated with emerging countries nonetheless disappeared?

Their excellent financial health cannot be allowed to mask recurring deficiencies in the business framework that stoke credit risk on companies. Coface is making public for the first time a specific system for rating the business environment in 155 countries. Complementary to Country@ratings, a new rating is thus available that reflects business environment quality by country.   In assessing credit risks it is indeed equally important to know whether a company’s accounts faithfully reflect its actual financial situation and whether the legal system can provide fair and efficient recourse in case of payment default.  Coface draws on the experience in risk underwriting, business information, and receivables management gained through its worldwide network of local operations to develop the BusinessEnvironment@rating system.  Like Country@ratings, the new ratings fall on a scale with seven levels in increasing order of risk, A1, A2, A3, A4, B, C, and D, where A1 represents least risk.   Source: Coface Press Release

BIIA Newsletter March 2008 Issue