New country risk ratings include ESG insights

Sustainalytics, an analytics firm focused on environmental, social and governance (ESG) ratings, has announced the launch of its Country Risk Ratings, which combine ESG and economic indicators.

The ratings, covering 170 countries, are designed to give fixed income investors a forward-looking assessment of a country’s long-term prosperity by measuring its assets (including natural, human and institutional capital) alongside its ability to manage those assets sustainably.

Ratings are based on more than 40 indicators, which include 10 of Sustainalytics’ proprietary event indicators, as well as indicators from sources such as the World Bank and United Nations.

“With Sustainalytics’ Country Risk Ratings, fixed income investors can supplement their credit ratings and integrate our ratings directly into their credit risk analysis to get a more holistic view of country risk,” Vikram Puppala, Sustainalytics’ director of product strategy and development, said in a release.

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