In order to evaluate the creditworthiness of various countries, a learning model is induced from the 1998 S&P country risk ratings, using the 1998 values of nine economic and three political indicators. This learning model allows the construction of a partially ordered set describing the relative superiority of countries on the basis of their creditworthiness, and it is shown that the Condorcet...

In times of uncertainty, the risks associated with engaging in international operations have increased substantially. Country risk reflects the ability and willingness of a country to service its foreign financial obligations. Such risk may be prompted by country-specific and regional economic, financial, political and composite factors. The paper provides a novel analysis of four risk ratings ...

The No-Arbitrage model by Schonbucher [30] is combined with the Extended Vasicek Term Structure Model and applied to the pricing of DM-Eurobonds issued by sovereigns from emerging economies. Practical hedging according to the model is investigated. A portfolio of DM-Eurobonds is analyzed using the risk measures "Shortfall" and "Value at Risk".

Country risk has recently become a topic of major concern for the international financial community. A critical assessment of country risk is essential because it reflects the ability and willingness of a country to service its financial obligations. Various risk rating agencies employ different methods to determine country risk ratings, combining a range of qualitative and quantitative informa...

The central objective of this paper is to develop transparent, consistent, selfcontained, and stable country risk rating systems, closely approximating the country risk ratings provided by a major rating agency (Standard & Poor). We propose two models that achieve the stated objectives, the first one utilizing the classical econometric technique of multiple linear regression, and the second one...

Small Island Tourism Economies (SITEs) differ significantly in their size, location, political systems, historical experience, economic prospects, ecological fragility, and vulnerability to ethnic conflicts, crime, and the threat of global terrorism. Given these differences, a careful analysis of country risk and its components for the SITEs is of great interest to private tourism operators and...