Country @rating Methodology

Coface Country @ratings for 157 countries are available and updated regularly on this website. They can be accessed freely for consultation purposes.

The Country @rating assigned by Coface reflects the average level of short-term non-payment risk associated with companies in a particular country. It reflects the extent to which a country’s economic, financial, and political outlook influences financial commitments of local companies. However, international trade actors know that sound companies can operate in risky countries and unsound companies in less-risky countries and that overall risk will depend not only on a company’s qualities but also on those of the country in which it operates. In assessing overall risk associated with a particular operation, Country @ratings are thus complementary to @rating Credit Opinions on companies.

How assessments are assigned?

Assessments are based on threefold expertise developed by Coface:

- macroeconomic expertise in assessing country risk based on a battery of macroeconomic financial and political indicators
- expertise on business environment. The score is based on internal and external sources
- microeconomic expertise that draws on Coface databases covering 50 million companies worldwide and 50 years experience with payment in trade flows it guarantees.

A1	The political and economic situation is very good. A quality business environment has a positive influence on corporate payment behaviour. Corporate default probability is very low on average.
A2	The political and economic situation is good. A basically stable and efficient business environment nonetheless leaves room for improvement. Corporate default probability is low on average.
A3	Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behaviour. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average.
A4	A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behaviour. Corporate default probability is still acceptable on average.
B	Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable.
C	A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour. Corporate default probability is high.
D	A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.