Who are the top riskiest debtors?
It may not be a surprise to see Egypt and Lebanon on the list but guess the worst performers and who tops the list of top riskiest credits.
April 10, 2011 3:33 by Reuters
Egypt and Lebanon joined the ranks of the top 10 riskiest sovereign debtors in the first quarter of 2011 as unrest in the Middle East took its toll, while Japan’s triple disaster weighed on its debt insurance costs, CMA Datavision said on Thursday.
Greece pipped Venezuela as the world’s riskiest sovereign for the second quarter in a row, after Moody’s downgraded its rating at the start of March, while countries in the Middle East saw their debt insurance costs rise most sharply in the five-year credit default swap market.
“As the Middle East enters a turning point in its history, the cost of debt insurance widened out this quarter as bond investors move to the sidelines, waiting for the unrest to pass,” the data provider said in a report.
The first quarter’s worst performer was Bahrain, whose CDS widened to 320.1 bps from 183.9 bps — a rise of 74.1 percent — as the island-state saw the worst sectarian clashes between its Shi’ite majority population and the Sunni-ruled security forces since the 1990s.