Risk awareness vital for success of trade moves, agency says
The "non-investment grade" sovereign rating assigned by a domestic credit ratings agency to most of the nations involved in the "Belt and Road Initiative" underlines the potential risks of investing in those countries, experts said on Wednesday.
In a report that analyzes the credit risk for the "Belt and Road" strategy, an initiative proposed by President Xi Jinping to strengthen connectivity among Asian, European and African countries, China Chengxin International Credit Rating Co Ltd found that half of the nations have a sovereign rating below BBB, a rating that is considered to be "junk-level".
The agency found a vast disparity among the ratings of the 28 nations that it had studied: Top-rated Singapore (AAA, a stable outlook, the only country that got the rating) coexists with the most poorly rated, including Greece and Pakistan (both CCC, with a negative outlook).
