How we assess credit and political risks
Our view of the risks we write is based on various sources, including financial ratings and news agencies. We also engage the services of external intelligence consultants who advise us specifically on all risks we entertain.
We consider the macroeconomic perspective of the country in which the borrower is based, along with the government or regime, and the significance of relevant industry sectors in that country.
We also look at trends in the industry sector in which the risk operates and, for credit risk, we examine various criteria relating to the counterparty itself. These include its ownership and financial credentials, its significance to the economy, the nature of its trade as well as any associated political relationships. We also assess how the loan or project is structured.