Tuesday , 5 March 2024

Where Does U.S. Credit-worthiness Rank Among Other Countries? (+2K Views)

Leading up to the short term resolution of the debt ceiling crisis there were many articles about the extent of the national riskdebt of the U.S.. the likelihood of default and, as such, the overall credit-worthiness of the once proud U.S. of A. The fact is, however, that while the U.S. does not rank in the top 10, it is far more financially sound than most other countries. Take a look at where it ranks compared to 47 other countries.

By: Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here – register here). This paragraph must be included in any article re-posting to avoid copyright infringement.]

A recent post* by Neil Irwin (washingtonpost.com/blogs/wonkblog/) entitled The United States isn’t a top tier creditor, in one map includes what the Blackrock Group refer to as the Sovereign Risk Index. Their index has determine where each of the 48 countries covered ranks according to current perceived banking system strength, debt levels, deficit levels, foreign currency debt, and something Blackrock calls “willingness to pay” that counts for 30% of the total index.

It will probably come as no surprise to anyone that:

The 5 most creditworthy countries are deemed to be:

  1. Norway
  2. Singapore
  3. Switzerland
  4. Sweden
  5. Finland

Rounding out the Top 10 are:

  • Germany
  • Taiwan
  • Australia (#8)
  • Canada (#9)
  • New Zealand (#10)

The 2nd tier of countries include:

  • Chile
  • Denmark
  • South Korea
  • Netherlands
  • USA (#15)

Other notable mentions:

  • China  (#19)
  • Russia (#22)
  • U.K. (#24)
  • France (#30)
  • Japan (#33)

As to be expected the PIIGS rank at or near the bottom:

  • P – Portugal (#45)
  • I – Italy (#44)
  • I – Ireland (#42)
  • G – Greece (#48)
  • S – Spain (#41)

The BRICS are a mixed bag:

  • B – Brazil (#27)
  • R – Russia (#22)
  • I – India (#39)
  • C – China (#19)
  • S – South Africa (#36)

To see the above ranking on a map of the world visit the link below.

*http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/16/the-united-states-isnt-a-top-tier-creditor-in-one-map/ (© 1996-2013 The Washington Post)

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