BEIRUT: Euromoney magazine revised Lebanon’s country risk ranking downward as a result of the political tension and failure to form a Cabinet.
In its quarterly survey of the country risk of 184 countries, Euromoney magazine ranked Lebanon in 92nd place worldwide and in 11th place among 20 countries in the Middle East and North Africa region in June 2011, compared to 90th place globally and 12th regionally in March 2011, as reported by Lebanon This Week, the economic publication of the Byblos Bank Group.
The magazine said that the decline in Lebanon’s overall score and rank was driven primarily by the drop in the political risks score, as this category has a 30 percent weight in the overall score.
The scores of two MENA countries improved, 17 regressed and one stayed unchanged from March 2011, while the rankings of one country improved, 15 declined and four remained unchanged in the covered period.
Also, Lebanon came in 26th place among 45 upper middle income countries (UMICs) included in the survey.
Lebanon ranked in 90th place globally and in 12th place regionally in the March 2011 survey. The survey evaluates individual country risk by assigning a weighting to six categories that cover political risks, economic performance, access to bank finance and capital markets, debt indicators, credit ratings, and structural assessment.
Globally, Lebanon ranked ahead of Venezuela, Nigeria and Seychelles, and came behind Albania, Honduras and Argentina. It also ranked ahead of Seychelles and behind Albania among UMICs. Lebanon’s rank on the political risks category regressed by 17 spots from last March, its ranking on the economic performance improved by one spot while its rankings on the remaining categories were unchanged.
In parallel, Lebanon received a score of 41.8 points, down four percent from 43.5 points in the March 2011 survey.
Its score came below the global average of 44.55 points and lower than the MENA and Arab averages of 46.2 points and 43.9 points, respectively, as well as below the UMICs’ average score of 42.1 points. Lebanon’s score regressed on three of the six categories from last March while its score remained fixed on the debt indicators, credit ratings and access to bank finance and capital markets categories.
Its score on political risks declined by 10 percent, followed by structural assessments with a 2.4 percent fall and economic performance with a 0.3 percent contraction.
Lebanon posted the fourth steepest drop in rankings and the 13th steepest fall in scores among MENA countries in the June 2011 survey.
Lebanon ranked ahead of Burkina Faso and behind Tanzania globally, while it came ahead of Algeria and behind Tunisia regionally on the political risks category.
Also, it tied with Gambia and Seychelles, ranked ahead of Croatia and behind Nigeria worldwide, while it came ahead of Syria and behind Iraq regionally in economic performance. Further, it ranked ahead of Australia and behind Serbia globally, and ahead of all Arab countries on the structural assessment category.
Finally, Lebanon tied with Dominica, ranked ahead of Tajikistan and behind Turkey globally, and came ahead of Algeria and behind Tunisia on the debt indicators.