In a new report entitled, “Emerging Market Debt: Integrating ESG into the Sovereign Perspective,“ the Emerging Markets Debt team of ING Investment Management analyzes “the importance of gauging country creditworthiness through consistent analysis of ESG factors in emerging market debt investments.”
The report covers the second quarter of 2012 and was published on August 24, 2012.
These are counties with the top ten scores: Hong Kong (92.38), Chile (89.38), Singapore (88.23), Czech Republic (79.59), Uruguay (79.35), Bermuda, South Korea, Poland, Qatar and Lithuania (73.65) Despite their size, the BRICS countries placed in the middle of the field: South Africa – 18; Brazil – 20; China – 28; India – 43; and Russia – 44. The following emerging markets of varying sizes from difference continents were ranked 11 to 17 and thus scored higher than any of the BRICS countries: Malaysia, UAE, Costa Rica, Latvia, Hungary, Israel and Croatia. Cote d’Ivoire (21.9) ranked last of the 65 countries surveyed, preceded by Nigeria (27.91), Pakistan (23.52) and Iraq (22.31).
The sovereign risk model analyzes the following risk categories: institutional strength, political process, financial and economic strength, structural changes and external shock resilience.
Please visit the ING website to download the report.