Country Ratings Table for Payment Default
A more in-depth explanation of the ratings:
A1 – Steady political and economic environment is likely to further the already excellent payment record of companies. Very low risk probability.
A2 – Political and economic stability is generally good. Although the payment record of companies is not as good as A1, the risk is still considered low.
A3 – Unfavourable political or economic conditions MAY lead to a worsening of a payment record that is lower than that of A1 and A2. However, risk is still considered low.
A4 – Negative political or economic conditions is likely to worsen a patchy payment record of companies within this country. However, risk level is considered acceptable.
B – Unsteady political or economic conditions are likely to worsen an already poor payment record.
C – Very unsteady political or economic conditions are likely to worsen an already bad payment record.
D – Extremely unsteady political or economic conditions are likely to worsen an already very bad payment record.
Important!
The ratings should only be used as a guide, as a good company could be within a country with a poor/less favoured rating. Likewise, a poor company could be within a country with a good/highly favoured rating.
It is therefore important to research the company as you would when trading with a company in the UK.
Country Ratings
You should use these country ratings as a guide only. Further research of the individual company is required to help you determine the payment risk more accurately.
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1. Country Ratings for Payment Default
2. Ratings Explained and Country Table
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