Mapping Sovereign Risk

January 17, 2013

Drawing on a pool of financial data, surveys and political insights, the BSRI provides investors with a framework for tracking sovereign credit risk. the index uses more than 30 quantitative measures, complemented by qualitative insights from third-party sources.

Highlights for the quarter ended December 31:
? Japan fell two spots in the rankings as a result of its sharply deteriorating fiscal
balance—a space worth monitoring in 2013 as a new government and central
bank governor settle in.
? the united states remained at 15th place even as it teetered on the edge
of the “fiscal cliff” of automatic tax hikes and spending cuts.
? china, australia and new Zealand moved up in the rankings, with australia
jumping three spots thanks to an improved primary budget balance.
? India’s profile improved on most fronts, but the country remained stuck
at 39th place. south africa dropped two notches to 36th place.


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