Euler Hermes' Q1 2018 country risk ratings: 5 upgrades and 3 downgrades

  • Euler Hermes announces its Q1 2018 country and sector risk rating changes: 5 country ratings were upgraded: Chile, Ghana, Côte d’Ivoire, Egypt, and Russia; 3 were downgraded: Romania, Algeria and Tunisia.

  • 21 sectors were upgraded, mainly in Latin America (7), Western Europe (6) and Asia (5) while 10 were downgraded.

  • Global gross domestic product (GDP) growth is expected to accelerate from +3.2 percent in 2017 to +3.3 percent in 2018 and slightly slow down to +3.1 percent in 2019.

  • International trade should continue to grow by +4.4 percent this year and +3.8 percent in 2019.

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Euler Hermes, the worldwide leader in credit insurance, publishes its Q1 2018 country and sector risks ratings. Euler Hermes monitors 242 countries and territories using about 40 short-term and medium-term indicators to measure the risk of payment disruptions in a given country that are outside the control of companies.

Overall, Ghana, Côte d’Ivoire, Egypt and Russia’s ratings were upgraded, while Romania, Algeria and Tunisia’s ratings were downgraded.

Euler Hermes also specifically monitors the risk of non-payment in 18 sectors across 76 countries. In Q1 2018, the ratings of 21 industries were upgraded, mainly in Latin America (7), Western Europe (6) and Asia (5). By comparison, only 10 sectors were downgraded.

This reflects a broad based improvement on demand and profitability, as numerous sectors cash in on the acceleration of global growth; indeed, Euler Hermes recorded more sector upgrades than downgrades for the third consecutive quarter.

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“There is still room to grow: we forecast one to two years of additional growth globally. Nervous financial markets, tighter liquidity conditions, and looming protectionism are typical tensions for a late phase of the economic cycle.” said Ludovic Subran, Chief Economist at Euler Hermes.

The country and sector risks maps as well as our latest global macroeconomic forecast are available here.

About Euler Hermes

Euler Hermes is the global leader in trade credit insurance and a recognized specialist in the areas of bonding, guarantees and collections. With more than 100 years of experience, the company offers business-to-business (B2B) clients financial services to support cash and trade receivables management. Its proprietary intelligence network tracks and analyzes daily changes in corporate solvency among small, medium and multinational companies active in markets representing 92 percent of global GDP. Headquartered in Paris, the company is present in 52 countries with 6,050 employees. Euler Hermes is a subsidiary of Allianz, listed on Euronext Paris (ELE.PA) and rated AA by Standard & Poor’s. The company posted a consolidated turnover of 2.6 billion euros in 2017 and insured global business transactions for 894 billion euros in exposure at the end of 2017.

www.eulerhermes.com

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Jean-Baptiste Mounier
Euler Hermes Group
Phone: +33 184 11 5114

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