Euler Hermes: Country Risk

Question 1

2 short term alerts indicators

Answer 1

1. Cyclical Risk Indicator (CRI Rating) 2. Financing Flows Indicator (FFI Rating)

Question 2

Is Country Grade a LT or ST indicator?

Answer 2

Long-Term. Refer to the purely structural measure of the economic and political risk of transfer and of convertibility

Question 3

CRI

Answer 3

Measure the risk of worsening payments (Payment periods, non-payments) in relation to macroeconomic development

Question 4

How is Economic Risk Rating (E) determined on a scale of 6?

Answer 4

By Macroeconomic Rating (ME) on a scale of 6 and Structural Business Environment Rating (SBE) on a scale of 6.

Question 5

How is Country Grade determined on a scale of 6? (AA, A, BB, B, C, D)

Answer 5

The Economic Risk Rating (E) on a scale of 6 and Political Risk Rating (P) on a scale of 6

Question 6

Scale of FFI

Answer 6

L, M, H

Question 7

Scale of CRI

Answer 7

1, 2, 3

Question 8

cyclical risk

Answer 8

The risk of business cycles or other economic cycles adversely affecting the returns of an investment, an asset class or an individual company’s profits