Country of Risk Methodology

The following is the methodology for corporate entities and equities for Country of Risk.

Corporate entities

The methodology considers the following criteria:

A. Country of incorporation of the entity

B. Country where the operational headquarters is located

C. Country of the primary listing of equity instrument

D. Country issuing the reporting currency of the entity

Weighting Scheme

• Criterion B can always outweigh any combination of two other criteria unless A, C, and D all point to the same other country than B. In this case, the other country becomes the Country of Risk.

• For entities incorporated in an offshore location, the weightings differ:

  • A gets less weight

  • C gets increased weight

  • The weighting of B depends on whether it is based in an offshore location or not.

Governments and Government Entities: the country of risk is the same as the country in which these entities are located.

Supranational Entities: separate country code identifies them as global l in terms of the Country of Risk.

Equity Instruments: assigned the Country of Risk of the issuing entity.