Monday, May 07, 2012

Singapore Debuts in Top 10 of BlackRock’s Sovereign Risk Index

Singapore debuted in the top 10 of the BlackRock Sovereign Risk Index (BSRI) due to the country’s sterling debt profile, BlackRock announced on Monday.
The BSRI, which provides investors with a framework for tracking sovereign credit risk, ranked newcomers Singapore and Taiwan among the top 10 in the latest edition of the index.
Singapore parachuted into second place and Taiwan into sixth for their negative net debt, running tight budget ships and having debt that is held almost exclusively by domestic players.
“Singapore is a model citizen when it comes to its (negative) net government debt levels. The same can be said of Taiwan and we’re glad to be able to introduce these two countries into the BSRI index. Singapore has no foreign currency government debt to speak of while Taiwan has very little. Singapore scores higher in the willingness to pay category because of its government stability,” said Joel Kim, Managing Director and Head of Asia-Pacific Fixed Income at BlackRock.
Norway topped the BSRI rankings, while Greece remained at the bottom.
BSRI assesses sovereign credit risk of 48 countries by drawing on a pool of financial data, surveys and political insights.

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