Baltic News Network
Coface: among Baltics, only Estonia works to improve business risk rating
International credit risk insurance company Coface has upgraded Estonia’s rating in the new credit risk rating to A2. Latvia’s and Lithuania’s business environment assessment remain unchanged – A4 and A3 respectively.
The company expects slight growth for the world economy – of 2.7%. Coface mentioned political risks as the most serious threat to the business environment.
Coface representatives note that Estonia’s risks assessment has been upgraded to A2 (low risk level), considering the business development and stable economic growth rates. Bulgaria’s rating has been upgraded to A4 thanks to recovery of the country’s economy. Growth and decline of the number of insolvency cases have also helped upgrade Spain’s risk assessment to A3. Positive changes have been noticed in Iceland, Serbia, Bosnia and Herzegovina, Cyprus and Argentina.
Risk assessment has worsened for Mexico, South African Republic and Jordan. Coface representatives say lack of clarity about USA’s possible protectionism policy measures play a major role in Mexico’s case. The same applies to investment restrictions and lower oil business revenue. Jordan’s economy is affected by the inflow of a large number of refugees. This has affected price decline, unemployment and inflation rise. «This year, the world’s economy will be ruled by political risks and uncertainty. Looking at developed economies, the majority of uncertainties are associated with Europe. Our continent is currently in the state of expectation for multiple elections and Brexit talk outcome. Even in development regions development risk are higher than ever before. Those are only enhanced by the rise of public dissatisfaction and high security risks in CIS countries, Northern Africa and the Near East,» – notes Coface director in Latvia Arnis Blumfelds. Coface business environment risk assessment is based on multiple factors, including a country’s political, economic and financial state, solvency of enterprises and business environment development trends.