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OECD country risk: Slovakia now classified lowest risk

25. February, 2009

Slovakia is the third country in CEE besides Czech Republic and Slovenia to be classified on highest rank in regards to its creditworthiness – i.e. the likelihood of servicing its external debt.

One reason for Slovakia’s recent upgrade by OECD‘s Working Group Country Risk is the introduction of the euro as its currency at the beginning of the year. Over the last ten years since 1999, Slovakia’s rating improved thus steadily from an initial 4 (of a total of 8) to today‘s 0. Not only since the latest upgrade Slovakia compares favourably with its Western European neighbours as an investment-friendly market. The credit risk classification by the OECD has a direct impact on the export credit insurance premiums at Hermes (in the case of Germany). The situation looks gloomier for other CEE countries, whose classification was downgraded in the wake of increased risks posed by the global economic crisis: Bulgaria (from 3 to 4), Hungary (from 3 to 4) and Ukraine (from 5 auf 6) fell by 1 each. Unchanged remained the markets of Czech Republic (0), Poland (2) and Romania (3). The figures for other CEE countries can be found on the OECD homepage.