Euromoney Country Risk

  

A rating of investment risk for countries throughout the world.

In general, "country risk" refers to the amount of risk an investment has as a result of the country where the investment takes place. The U.S. has a low risk. A war-torn, high-corruption country (South Sudan, for instance) carries a high risk.

A key note on the name: just because the phrase includes the word "Euro" doesn't mean it only applies to Europe. Countries from all over the world get rated. The "Euromoney" part comes from the fact that Euromoney is the company that publishes the index.

In compiling the list, Euromoney looks at each country and gives it a score based on its investment risk. The ratings span from zero (very risky) to 100 (very safe).

Find other enlightening terms in Shmoop Finance Genius Bar(f)