NEW YORK, NY -- 09/05/08 --
In a sign that emerging market economies are
decoupling from trends in the developed world, the creditworthiness of most
emerging economies rose significantly in the past six months while that of
virtually all industrialized countries in North America, Western Europe and
Asia declined, according to Institutional Investor's exclusive semiannual
Country Credit survey.
Developed countries were affected by the fallout from the global credit
crisis, with the U.S. seeing its credit rating fall 0.8 point, to 93.0,
Western Europe dropping 0.9 point, to 90.2, and Japan sliding 0.8, to 90.6.
The ratings are on a scale of zero to 100. But surprisingly little of the
economic doom and gloom has seeped into the emerging markets.
Latin America leads the gainers among emerging markets. Ratings for 26 of
the 28 countries in the region rise, led by Brazil, which is up 5.2 points
at 65.8, and Peru, up 4.8 points at 62.5. China leads the way in developing
Asia, rising 1.3 points to 77.8. High oil prices continue to fuel gains in
creditworthiness across much of the Middle East and North Africa.
Thanks to the strength of emerging markets, the average credit rating
worldwide rises 0.7 point over the past six months, to 47.3.
The biggest increase in the survey belongs to Iraq; its rating is up 8.8
points. The U.S. languishes in 13th place, just behind the U.K. and France.
Institutional Investor's September 2008 Country Credit Ratings: Top Ten
Countries
Rank/Sept Rank March II Credit Six-Month One-Year
2008 2008 Country Rating Change Change
--------- ---------- ----------- --------- --------- --------
1 1 Switzerland 96.0 -0.4 -0.4
2 2 Luxembourg 95.4 -0.9 -0.1
3 3 Norway 95.2 -0.7 -0.8
4 7 Germany 95.0 0.2 0.2
5 4 Netherlands 94.7 -0.3 -0.1
6 9 Canada 94.7 0.1 0.3
7 5 Finland 94.6 -0.3 -0.4
8 6 Sweden 94.1 -0.7 -0.4
9 8 Denmark 94.0 -0.7 -0.7
10 10 Austria 93.7 -0.9 -0.7
For more data on all 177 countries in the survey, go to www.iimagazine.com,
including the rating methodology; regional rankings; the economic,
financial and political indicators that sovereign-risk analysts consider
most important in rating each region; and investors' views on the outlook
for global credit and related issues.
About Institutional Investor
Now entering its fifth decade, Institutional Investor has consistently
distinguished itself among the world's foremost financial publications with
ground-breaking journalism and incisive writing that provides "must read"
intelligence for a global audience. Throughout the year, Institutional
Investor offers a host of proprietary research and rankings that serve as
respected industry benchmarks, informing and influencing its carefully
targeted circulation base throughout the year.
Contact:
Chris Cavanagh
212-224-3369
chriscavanagh@iimagazine.com
