Greece is considered as the world’s most risky to default and tops again the CMA list of Sovereign Debt Risk Report with a 58% chance of a debt restructuring occurring within five years. The London-based CMA released Global Sovereign Credit Risk Report refers to the first Quarter of 2011.
On the Top 10 of most risky countries Greece leads as in the 4Q 2010 report and is followed by Venezuela, Ireland, Portugal and Argentina.
Specifically the CMA notes on Greece:
“No change to the top six. Greece rallied 200bp in January, but widened back out reaching a high of 1100bp, following downgrades by Moody’s in early March, ending the quarter as the most risky sovereign debt with a 58% chance of a debt restructuring occurring within five years”.
CMA notes that Spain and Hungary were replaces in the top 10 risky list, due to entrances of Egypt and Lebanon in the context of unrests in the Middle East.
“The report found no change in the six riskiest sovereign debts, with Greece retaining its position as the world’s most risky for the second quarter in succession. Despite a rally in January, Greece widened to reach a high of 1100bp following downgrades by Moody’s in early March. Egypt and Lebanon have replaced Spain and Hungary in the top 10, with unrest in the Middle East making it a testing quarter for the region.”
On the top of Top 10 Less Risky countries Norwaykeeps the lead followed by Sweden, Finland, Switzerland and the Netherlands – a new entry.
Read the Full CMA-Report HERE
Our Article on CMA-Report 4Q 2010 – Greece HERE