JP Morgan: Chile's country risk rating returns to second place in the region
Published: August 28, 2008
Chile's country risk rating returned to second place in Latin America with 161 points, according to the Global EMBI prepared by the investment bank JP Morgan. Mexico is in first place with 158 points while Peru is in third place with 164 points. Other Latin American countries with a relatively low risk rating include Colombia (170 points), Brazil (183) and Panama (186). Nations hit hard by their political and economic situation and with subsequently high risk levels include Argentina (549), Ecuador (556) and Venezuela (613).
The EMBI indicator makes a daily comparison of country risk relative to the economy of the United States, and it is used to calculate market quality and liquidity. Chile has historically shown good levels thanks to its low debt and stability.
Despite regaining second place, Chile's country risk showed a 0.73% daily increase and an accumulated increase of 6.72% so far this year. Meanwhile, Peru has accumulated a rise of 13.21% in 2008.