The Chilean economy received more positive feedback from global economists in April, this time for the country’s sterling reputation for receiving strong credit ratings.
Chile was ranked the tenth least-risky country for sovereign debt by New York-based consultancy CMA in its quarterly Global Sovereign Debt Credit Risk Report.
Earlier this year, the Chilean economy was also ranked the tenth most promising market for foreign companies investing in infrastructure, and the only Latin American nation to receive the lowest political risk rating from Aon Corporation.
Chile was the only Latin American country to make the top 10 in CMA’s ranking, and one of only two economies – along with Hong Kong – to top the list outside of Western Europe and the United States.
The European quartet of Norway, Sweden, Finland and Switzerland maintained their position at the top of the ratings for least risky external debt, although Sweden and Finland swapped places in the first quarter for second and third, respectively.
The Netherlands jumped into fifth place last quarter, without having been included on the previous quarter’s top-10 list. Denmark and Hong Kong juggled sixth and seventh places, and the United States slipped to eighth place. Germany stayed stable at ninth place, and Chile nudged out Australia to take tenth place.
Panama was the next Latin America country in the ranking of least-risky debt, at number 20. Two Latin American countries – Venezuela and Argentina – were listed as some of the riskiest countries last quarter, riskier than Lebanon, Egypt and Iraq.
The CMA ranking is an industry standard to quantify the probability that a country will be unable to honor its foreign debt in a given time period. The risk of restructuring foreign debt is also included in the calculation.