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Slovenia Business Week no. 02/2005: Coface Leaves Slovenia's Risk Level at A2

The Slovenian branch of Coface Intercredit said that a country rating assigned by Coface reflects the average level of short-term non-payment risk associated with companies in a particular country

Global economic risk assessment levelled off in the past three months, while the risk level has been rising in West Europe (up 8%), according to Coface Intercredit, a leading provider of services for business information and debt management in Central and Eastern Europe. Slovenia's risk assessment remains A2, the assessment it received in 2001.

The Slovenian branch of Coface Intercredit said that a country rating assigned by Coface reflects the average level of short-term non-payment risk associated with companies in a particular country. It reflects the extent to which a country's economic, financial, and political outlook influences financial commitments of local companies.

Coface determines an overall rating for each of the 150 countries monitored. It ranks country ratings on seven risk levels: for risks rated from A1 to A4 (where A1 represents least risk) short term payment default probability ranges from very low to acceptable, and for risks rated B, C, or D, the country's very uncertain economic and political environment could undermine payment behaviour that is already often poor.

In industrialised countries, the gap has been growing between eurozone companies suffering from a strong currency and sluggish domestic demand and North American companies still benefiting from a buoyant economic environment. The risk level has thus been rising in West Europe (up 8%), notably Germany with that country's A2 rating no longer positive watchlisted, according to Coface.

In Central Europe, the index improvement (down 3%) reflects the rating changes for five countries, namely upgrading of the three Baltic countries - Estonia from A3 to A2, Latvia and Lithuania from A4 to A3, upgrading of Serbia-Montenegro from D to C, and positive watchlisting of Bulgaria's B rating, Coface said in a press release.

Source: Slovene Press Agency STA

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