Risk agency reduces financial strength rating on 47 countries
Credit insurer and ratings agency Coface has imposed negative ratings actions on 47 countries as trade risk continues to spiral.
Coface rates countries according to a 13-point scale measuring the average risk of commercial transactions. Most of the 47 countries face a one-point downgrade but several countries including Spain, the UK and Ireland have been downgraded two points.
Australia was not included among the 47 countries to face downgrade actions. Other areas to avoid a reduced risk rating included India, Brazil, China, the Middle East and North Africa.
Coface President Francois David says despite the negative ratings actions conditions are expected to ease in the first half of the year.
“Our main scenario still forecasts the end of the credit crisis in the second half of 2009,” he said.
Coface rates countries according to a 13-point scale measuring the average risk of commercial transactions. Most of the 47 countries face a one-point downgrade but several countries including Spain, the UK and Ireland have been downgraded two points.
Australia was not included among the 47 countries to face downgrade actions. Other areas to avoid a reduced risk rating included India, Brazil, China, the Middle East and North Africa.
Coface President Francois David says despite the negative ratings actions conditions are expected to ease in the first half of the year.
“Our main scenario still forecasts the end of the credit crisis in the second half of 2009,” he said.