ESG
Country
Credit
Ratings
ESG Credit Rating & Sovereign Bonds
ESG-adjusted country ratings better reflect investor risks & opportunities
Sovereign risk ratings –commonly referred to as credit rating – determines the level of interest a country has to pay for loans and credits. It is therefore a very important parameter for every economy – it defines the level of capital cost for new investments, whatever the nature of those investment may be. Credit ratings also affect direct investment decisions.
Sovereign risk ratings are calculated by a number of rating agencies, most notable (and defining) by the “three sisters”: Moody’s S&P, and Fitch. The publications and ratings of these three companies therefore have a significant impact on the cost of capital of a specific country.
Conventional credit ratings are calculated based on a mix of economic, political and financial risks – mainly current risks. However, current risks – like GDP – do not reflect the framework that creates the current situation. Current rating methodologies fail to integrate the wider environment – the ability and motivation of the workforce, the health and well-being of the population, the physical environment (natural and man-made) that have caused the current situation. It is therefore questionable whether credit ratings truly reflect investor risks of investing in a specific country.
For a detailed analysis, download the ESG Sovereign Bond Report.
ESG credit ratings vs. conventional ratings
ESG Ratings vs currently used country credit ratings:
ESG Sovereign Bond Rating by Country
| Country | Current Credit Rating Average Moody's, S&P, Fitch | GSCI ESG Rating | ESG vs. Current Rating | ESG-Adjusted Rating | ESG-Adjusted vs. Current Rating |
|---|---|---|---|---|---|
| Albania | B+ | BBB+ | 6 | BB+ | 3 |
| Andorra | BBB+ | BBB | -1 | BBB | -1 |
| Angola | CCC+ | B+ | 3 | B | 2 |
| Argentina | CCC | BBB+ | 10 | BB− | 5 |
| Armenia | B+ | BBB | 5 | BB+ | 3 |
| Aruba | BBB− | CCC− | -9 | B | -5 |
| Australia | AAA | BBB+ | -7 | AA− | -3 |
| Austria | AA+ | AA− | -2 | AA | -1 |
| Azerbaijan | BB+ | B+ | -3 | BB− | -2 |
| Bahamas | BB− | B− | -3 | B | -2 |
| Bahrain | B+ | CCC+ | -3 | B− | -2 |
| Bangladesh | BB− | BB | 1 | BB | 1 |
| Barbados | CCC+ | B | 2 | B− | 1 |
| Belarus | B | BBB+ | 7 | BB | 3 |
| Belgium | AA− | A | -2 | A+ | -1 |
| Belize | CCC− | BBB | 10 | B+ | 5 |
| Benin | B+ | B− | -2 | B | -1 |
| Bolivia | B | BBB+ | 7 | BB+ | 4 |
| Bosnia and Herzegovina | B | BBB | 7 | BB | 4 |
| Botswana | A− | BB | -5 | BBB− | -3 |
| Brazil | BB | BBB+ | 5 | BBB− | 3 |
| Bulgaria | BBB | BBB+ | 1 | BBB+ | 1 |
| Burkina Faso | B | BB− | 2 | B+ | 1 |
| Cambodia | B | BB | 3 | BB− | 2 |
| Cameroon | B | BBB− | 5 | BB | 3 |
| Canada | AAA | A− | -6 | AA− | -3 |
| Cape Verde | B− | B− | 0 | B− | 0 |
| Chile | A | A− | -1 | A | 0 |
| China | A+ | A− | -2 | A | -1 |
| Colombia | BBB− | BBB+ | 2 | BBB | 1 |
| Congo | CCC+ | BB− | 4 | B | 2 |
| Costa Rica | B | A | 9 | BBB− | 5 |
| Croatia | BBB− | A+ | 5 | A− | 3 |
| Cuba | CC | BB+ | 9 | B | 5 |
| Cyprus | BBB− | BBB | 2 | BBB− | 1 |
| Czech Republic | AA− | A | -2 | A+ | -1 |
| Denmark | AAA | AA | -2 | AA+ | -1 |
| Dominican Republic | BB− | BBB− | 3 | BB+ | 2 |
| Ecuador | CCC+ | BBB+ | 10 | BB− | 5 |
| Egypt | B | B+ | 1 | B+ | 1 |
| El Salvador | B− | BBB− | 7 | BB− | 4 |
| Estonia | AA− | A+ | -1 | A+ | -1 |
| Ethiopia | CCC | BB | 6 | B | 3 |
| Fiji | B+ | BBB | 5 | BB+ | 3 |
| Finland | AA+ | AA+ | 0 | AA+ | 0 |
| France | AA | AA− | -1 | AA | 0 |
| Gabon | B− | BB | 5 | B+ | 3 |
| Georgia | BB | BBB+ | 4 | BBB− | 2 |
| Germany | AAA | AA− | -3 | AA+ | -1 |
| Ghana | B | BBB | 7 | BB | 4 |
| Greece | BB | BBB+ | 4 | BBB− | 2 |
| Guatemala | BB | B | -3 | BB− | -1 |
| Honduras | B+ | B | -1 | B+ | 0 |
| Hong Kong | AA | BBB | -6 | A | -3 |
| Hungary | BBB | A− | 2 | BBB+ | 1 |
| Iceland | A | AA | 3 | AA− | 2 |
| India | BBB− | B+ | -4 | BB | -2 |
| Indonesia | BBB | BBB | 0 | BBB | 0 |
| Iraq | B− | CC | -4 | CCC | -2 |
| Ireland | A+ | AA− | 2 | A+ | 1 |
| Isle of Man | AA− | BBB | -5 | A | -2 |
| Israel | A+ | BBB | -4 | A− | -2 |
| Italy | BBB | A− | 2 | BBB+ | 1 |
| Ivory Coast | BB− | BBB− | 3 | BB+ | 2 |
| Jamaica | B+ | BB− | 1 | B+ | 0 |
| Japan | A+ | A+ | 0 | A+ | 0 |
| Jordan | B+ | B+ | 0 | B+ | 0 |
| Kazakhstan | BBB | BBB− | -1 | BBB | 0 |
| Kenya | B | BBB− | 5 | BB | 3 |
| Kuwait | AA− | B | -11 | BBB− | -6 |
| Kyrgyzstan | B | BBB | 6 | BB | 3 |
| Laos | CCC+ | BB+ | 7 | B+ | 4 |
| Latvia | A | A | 0 | A | 0 |
| Lebanon | D | CCC | 4 | CC | 2 |
| Lesotho | B | B− | -1 | B | 0 |
| Liechtenstein | AAA | A+ | -4 | AA | -2 |
| Lithuania | A | A | 0 | A | 0 |
| Macedonia | BB+ | BBB | 2 | BBB− | 1 |
| Malaysia | A− | BBB | -2 | BBB+ | -1 |
| Maldives | B− | BBB− | 7 | BB− | 4 |
| Mali | CCC+ | B− | 1 | B− | 1 |
| Malta | A+ | A− | -2 | A | -1 |
| Mauritius | BBB | BBB+ | 1 | BBB+ | 1 |
| Mexico | BBB | BBB− | -1 | BBB | 0 |
| Moldova | B− | BBB− | 6 | BB− | 3 |
| Mongolia | B | BB− | 2 | B+ | 1 |
| Montenegro | B+ | BBB | 6 | BB | 3 |
| Morocco | BB+ | BB+ | 0 | BB+ | 0 |
| Mozambique | CCC+ | CCC+ | 0 | CCC+ | 0 |
| Namibia | BB | BB+ | 2 | BB | 1 |
| Netherlands | AAA | A | -5 | AA | -2 |
| New Zealand | AA+ | A+ | -3 | AA | -1 |
| Nicaragua | B− | BB | 4 | B+ | 2 |
| Niger | B− | B+ | 2 | B | 1 |
| Nigeria | B | B | 0 | B | 0 |
| Norway | AAA | AA | -2 | AA+ | -1 |
| Oman | BB− | BB− | 0 | BB− | 0 |
| Pakistan | B− | CCC+ | -1 | B− | 0 |
| Panama | BBB | BBB+ | 1 | BBB | 0 |
| Papua New Guinea | B | BB− | 2 | B+ | 1 |
| Paraguay | BB+ | BBB+ | 3 | BBB− | 1 |
| Peru | BBB+ | BBB+ | 0 | BBB+ | 0 |
| Philippines | BBB | BB | -3 | BBB− | -1 |
| Poland | A | A− | -1 | A− | -1 |
| Portugal | BBB | A+ | 4 | A− | 2 |
| Puerto Rico | D | BB+ | 11 | B− | 6 |
| Qatar | AA− | B− | -12 | BBB− | -6 |
| Republic of the Congo | CCC+ | B | 2 | B− | 1 |
| Romania | BBB− | A− | 3 | BBB+ | 2 |
| Russia | BBB | BBB+ | 2 | BBB | 1 |
| Rwanda | B+ | B | -1 | B | -1 |
| San Marino | BB+ | A− | 4 | BBB | 2 |
| Saudi Arabia | A+ | BB− | -8 | BBB | -4 |
| Senegal | BB− | BB | 2 | BB− | 1 |
| Serbia | BB+ | BBB+ | 3 | BBB− | 1 |
| Seychelles | B+ | BB− | 1 | BB− | 1 |
| Singapore | AAA | BBB+ | -7 | AA− | -3 |
| Slovakia | A | A | 0 | A | 0 |
| Slovenia | A | A | 1 | A | 1 |
| Solomon Islands | CCC+ | BBB | 8 | BB− | 4 |
| South Africa | BB | B | -3 | B+ | -2 |
| South Korea | AA | A | -3 | A+ | -2 |
| Spain | A− | A | 1 | A | 1 |
| Sri Lanka | CCC+ | BBB | 8 | BB− | 4 |
| St Vincent and the Grenadines | B− | BB− | 3 | B+ | 2 |
| Suriname | CCC− | BBB− | 9 | B+ | 5 |
| Swaziland | B− | BB− | 3 | B+ | 2 |
| Sweden | AAA | AA+ | -1 | AAA | 0 |
| Switzerland | AAA | AA | -2 | AA+ | -1 |
| Tajikistan | B− | BB+ | 5 | BB− | 3 |
| Tanzania | B | BB− | 2 | B+ | 1 |
| Thailand | BBB+ | BBB− | -2 | BBB | -1 |
| Togo | B | B | 1 | B | 1 |
| Trinidad and Tobago | BB | B− | -4 | B+ | -2 |
| Tunisia | B− | BB− | 4 | B | 2 |
| Turkey | B+ | BBB− | 4 | BB | 2 |
| Uganda | B | B− | -1 | B | 0 |
| Ukraine | B | BBB | 6 | BB | 3 |
| United Arab Emirates | AA | BB+ | -8 | A− | -4 |
| United Kingdom | AA− | A+ | -1 | AA− | 0 |
| USA | AAA | A− | -6 | AA− | -3 |
| Uruguay | BBB | A− | 2 | BBB+ | 1 |
| Uzbekistan | BB− | BBB− | 4 | BB | 2 |
| Venezuela | D | BBB | 13 | B | 7 |
| Vietnam | BB | BB | 0 | BB | 0 |
| Zambia | CC | B− | 4 | CCC | 2 |
Sustainabilty-adjusted credit ratings of selected countries
For a detailed analysis, download the ESG Sovereign Bond Report. Read more on the Global Sustainable Competitiveness Index
ESG Ratings vs. Conventional Ratings:
Download the Analysis:
ESG Sovereign Bonds
Sustainable Competitiveness vs. the WEF-Competitiveness Calssification:
Download the Anaysis: Sustainable Competitiveness Vs. WEF Competitiveness
