Country Risk Service Handbook

About This Handbook

The Country Risk Service Handbook from The Economist Intelligence Unit provides a detailed explanation of how the EIU assesses country credit risk. It serves as a transparent guide to the methodology behind the Country Risk Service, which publishes comparable and regularly updated country credit risk ratings for 131 economies.

What the Handbook Covers

The handbook walks through the regulation, country coverage, and rating frequency of the CRS. It explains the six risk categories used in the service: sovereign risk, currency risk, banking sector risk, political risk, economic structure risk, and overall country risk. It also defines the sovereign rating bands from AAA to D, clarifying the characteristics of each band.

Inside the Rating Methodology

A significant portion of the handbook is dedicated to the rating model. It describes the three versions of the model (standard for emerging economies, industrialised for developed economies, and a euro area variant), the 61 indicators across politics, economic policy, economic structure, the economic cycle, and financing/liquidity, and how scores are mapped to ratings. The handbook also covers model calibration and historical rating performance.

Who Should Use This Handbook

This handbook is intended for professionals who rely on country risk analysis—credit analysts, risk managers, institutional investors, trade finance professionals, and policy advisors. It offers a clear reference for interpreting the EIU’s country risk outputs and understanding the assumptions behind them.

Whether you are new to the Country Risk Service or need a quick methodological reference, this handbook provides the essential framework for understanding how sovereign, currency, and banking sector risks are evaluated.