SECTOR REPORTS

We analyse risk across economic sectors to provide you with valuable insights and inform your decisions. Our expertise is your best business ally.

What is a Sector Risk Analysis?

A sector risk analysis measures the economic and financial condition of a given a sector. The analysis provides information on the risk of non-payment by companies within a specific industry. The sector reports are designed to complement our country risk analysis to help you trade with confidence.

How is a Sector Rated?

Our sector risk analyses are based upon a forward-looking evaluation reviewing four key determinants: demand, profitability, liquidity, and business environment. Each sector then receives a grade based on a four-level scale from low to high.

Four Components Analyzed on a Global Scale

  1. Demand: outlook for companies’ turnovers based on the organic growth, fundamentals, and price competition of the sector.
  2. Profitability: outlook for companies’ margins and profits depending on the evolution of prices in raw materials/commodities, on labor costs and fluctuations in supply and capacity.
  3. Liquidity: outlook for companies’ cash positions and financing risk, based on access to financing and payment performance.
  4. Business Environment: any technological innovations, new government subsidies and changes in legal framework that can alter business models and companies’ strategies.

Four Levels of Risk

  1. High Risk: imminent or recognized crisis
  2. Sensitive Risk: structural weakness, unfavorable or fairly bad outlook
  3. Medium Risk: signs of weaknesses and possible slowdown
  4. Low Risk: sound fundamentals and very favorable or fairly good outlook
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