Credit Risk Index
A structured assessment of the overall creditworthiness of economies as lending and borrowing environments — covering banking sector health, private sector debt capacity, regulatory quality, and the macroeconomic conditions that determine whether borrowers can repay. Higher scores indicate lower credit risk.
A representative selection of credit risk scores across the spectrum. The full 190-country dataset — including all category-level sub-scores — is available on subscription.
Lowest credit risk
✓ Public| # | Country | Score | Tier |
|---|---|---|---|
| 1 | Switzerland | 95.8 | Very Low |
| 2 | Singapore | 95.2 | Very Low |
| 3 | Norway | 94.6 | Very Low |
| 4 | Denmark | 94.1 | Very Low |
| 5 | Germany | 93.4 | Very Low |
| 6 | Sweden | 92.8 | Very Low |
| 7 | Netherlands | 92.3 | Very Low |
| 8 | Australia | 91.7 | Very Low |
| 9 | Canada | 91.2 | Very Low |
| 10 | Finland | 90.6 | Very Low |
Highest credit risk
✓ Public| # | Country | Score | Tier |
|---|---|---|---|
| 190 | Venezuela | 2.1 | Very High |
| 189 | Zimbabwe | 3.7 | Very High |
| 188 | Lebanon | 4.9 | Very High |
| 187 | Eritrea | 5.8 | Very High |
| 186 | Somalia | 7.2 | Very High |
| 185 | Sudan | 8.6 | Very High |
| 184 | Yemen | 9.4 | Very High |
| 183 | Argentina | 12.1 | Very High |
| 182 | Sri Lanka | 13.6 | Very High |
| 181 | Ethiopia | 15.2 | Very High |
Full Credit Risk Index · 190 countries
⬤ Subscription required| # | Country | Score | Banking | Private Sector | Macro | Regulatory | Change |
|---|---|---|---|---|---|---|---|
| 11 | New Zealand | 90.1 | 89.4 | 91.2 | 88.7 | 91.1 | ▲ 0.3 |
| 12 | Austria | 89.6 | 88.2 | 90.1 | 89.4 | 90.7 | ▼ 0.1 |
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A different tool for a different decision
Credit Risk is not Sovereign Risk. Where Sovereign Risk asks whether a government will default, Credit Risk asks whether the lending environment in an economy is sound — whether banks are healthy, whether private borrowers can repay, and whether the regulatory infrastructure for credit actually works. The index is built for the clients who need to answer that question.
Correspondent banking & trade finance
Assessing the credit environment of counterparty jurisdictions for correspondent banking relationships and trade finance due diligence.
Private equity & direct lending
Evaluating whether local banking and credit infrastructure can support portfolio company financing in a target market.
Market entry financing assessment
Understanding whether local credit conditions support the working capital, trade credit, and financing needs of a market entry.
Financial crime risk screening
Weak credit regulation frequently correlates with weak AML and financial crime controls — credit risk scores provide an independent signal.
What the Credit Risk Index measures
The index is built on seven analytical categories covering both the supply and demand sides of credit — from banking sector health and regulatory quality to the macroeconomic conditions that shape borrower capacity. No single indicator captures the full picture; the composite reflects how these dimensions interact.
Banking Sector Health
- Non-performing loan (NPL) ratio
- Capital adequacy ratio (Tier 1)
- Bank return on assets (ROA)
- Loan-to-deposit ratio
- Bank Z-score (distance-to-default)
- Provision coverage ratio
Private Sector Credit Environment
- Domestic credit to private sector / GDP
- Credit growth rate
- Real lending interest rate
- Interest rate spread (lending minus deposit)
- SME access to finance
Macroeconomic Credit Conditions
- GDP growth rate
- Inflation rate
- Unemployment rate
- Corporate debt / GDP
- Household debt / GDP
- Real wage growth
External Credit Exposure
- External debt / GDP
- Short-term external debt / total external debt
- Foreign currency lending share
- Current account balance
- FX reserves coverage
Sovereign–Private Feedback
- Sovereign credit rating
- Government debt held by domestic banks
- Fiscal deficit / GDP
- Government borrowing cost trend
- Crowding-out of private credit
Regulatory & Institutional Quality
- Depth of credit information index
- Strength of legal rights index
- Financial sector regulatory quality
- Property rights protection
- Contract enforcement efficiency
Market Risk Indicators
- Exchange rate volatility
- Stock market volatility
- Corporate bond spreads (where available)
- Country risk premium
- Bank CDS spreads (where available)
Get full access to the Credit Risk Index
190 markets. Seven analytical categories. Quarterly updates covering banking health, private credit, and regulatory quality.