The Economist Intelligence Unit publishes Sovereign Ratings on 120 countries. The ratings for developed countries are updated bi-annually while the ratings for emerging countries are updated monthly. This rating “measures the risk of a build-up in arrears of principal and/or interest on foreign- and/or local-currency debt that is the direct obligation of the sovereign or guaranteed by the Sovereign.”

The Latest Sovereign Ratings

[TABLE=181]

Norway is the safest country in terms of sovereign debt. Since Norway has no deficits and has an abundance of oil resources, it is ranked the highest rating AAA. The US was given the AA rating. Other countries that received the AA ranking include Canada,Switzerland, The Netherlands and the Scandinavian countries.

Zimbabwe is the only country with D which implies very weak payment capacity and is currently in default. India, China and Brazil were ranked BB. Russia’s outlook is negative.