What is a Country Risk Analysis?
A country risk rating measures the risk of non-payment by companies in a given country. This risk is due to conditions or events outside any company's control. Knowing a country's risk, can help you make better decisions when trading internationally.
The overall country analysis is based on two elements:
- Medium-Term Rating (Country Grade)
- Short-Term Rating (Country Risk Level)
By looking at these two factors together, Euler Hermes is able to create a model and system for evaluating country risk levels.