Gambling on country risk

Exporters look to export credit agencies (ECA) to underwrite the risk of default of payment from their counterparties. Which countries in Asia are most at risk? Jenny Plei, head of country risk for French ECA Coface, explains.

Q How is country risk measured

We assess the financial situation, political situation and the general environment that may impact on the payment ability of the corporate in the country. At Coface, we have developed our own rating where we estimate the average probability of default of the corporate situated in the country. This is important because at Coface we guarantee the payment of trade between two enterprises. It is a financial analysis.

On top of this we have to take into account other factors that may impact on the ability of the company to make payment. We assess the factors in a country that will impact...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222