Snapshot Images of Country Risk Ratings: An International Comparison

Country risk has become a topic of major concern for the international financial community over the last two decades. Various risk rating agencies employ different methods to determine country risk ratings, combining a range of qualitative and quantitative information regarding alternative measures of political, economic and financial risk into associated composite risk ratings. This paper compares international country risk ratings for 1998-99 compiled by the International Country Risk Guide, which is the only rating agency providing monthly data for a large number of countries. The snapshot graphical images provide a comparative assessment of the international country risk ratings, and highlight the importance of political, economic and financial risk ratings as components of a composite risk rating.