|
|
Credit Risk Changes
The risk ratings for the month of November for Pakistan and Syria have been upgraded.
Upgrades
For the month of October, the risk rating changes are as follows:
Upgrades
Downgrades
Risk Rating Explanations
The DB risk indicator is divided into seven bands, ranging from DB1 through DB7.
Each band is subdivided into quartiles (a-d), with an ‘a’ designation representing slightly less than a ‘b’ designation and so on.
Only the DB7 indicator is not divided into quartiles.
|
Indicator |
Meaning |
Explanation |
|
DB1 |
Lowest Risk |
Lowest degree of uncertainty associated with expected returns, such as
export payments, and foreign debt and equity servicing.
|
|
DB2 |
Low Risk |
Low degree of uncertainty associated with
expected returns. However, country-wide factors may result in higher
volatility of returns at a future date.
|
|
DB3 |
Slight Risk |
Enough uncertainty over expected returns to
warrant close monitoring of country risk. Customers should actively
manage their risk exposures.
|
|
DB4 |
Moderate Risk |
Significant uncertainty over expected returns. Risk-averse customers are
advised to protect against potential losses.
|
|
DB5 |
High Risk |
Considerable uncertainty associated with
expected returns. Businesses are advised to limit their exposure and/or
select high-return transactions only.
|
|
DB6 |
Very High Risk |
Expected returns subject to large degree of
volatility. A very high expected return is required to compensate for
the additional risk or the cost of hedging such risk.
|
|
DB7 |
Highest Risk |
Returns are almost impossible to predict
with any accuracy. Business infrastructure has, in effect, broken down.
|
For more information on D&B Country Risk Report, kindly contact us at (65) 6513 6262.
|
|
 |
|
