The international risk rating agency raised Israel's country risk rating by one grade from A4 to A3. Israel now boasts the same risk rating as the U.K., Italy and China
The upgrade announced last week was one of 20 upgrades in the company’s global country risk review. Israel's risk rating by Coface is significant for foreign-trade risk insurance and credit terms for Israeli companies as they compete in the global trading arena.
In a statement issued by Coface it noted that Israel was one of the very few countries in the world that managed to improve its risk rating in recent months, as the global economic crisis continued to shadow the world's economies.
Israel's A4 rating of the past two years was the same rating as Mexico, Estonia, and Hungary.
Coface country ratings A1 through A4 are considered ratings that enable countries to get investment and local companies to obtain credit. Country ratings of B, C, and D indicate increasing risk, and concerns about default.
Coface's country rating is highly important in setting credit levels for Israeli companies in their international business transactions. The upgrade will reduce Israeli companies' foreign trade credit insurance premiums and may raise the credit levels thatIsraeli manufacturers and importers will be able to obtain. Foreign trade credit insurance is a critical tool for open credit between foreign suppliers and Israeli companies, so the country rating upgrade could save Israeli companies up to $100 million. The upgrade will also make about 400 more Israeli companies eligible for credit from foreign suppliers.
BDI Coface Ltd., a subsidiary of Coface, is the leading business information company in Israel. For years, BDI Coface has been part of the Credit Alliance network established by COFACE.
COFACE is number one worldwide in export credit insurance and guaranteed ratings uniting high quality partners in the field of credit information and credit insurance. This network currently spans about 100 countries and five continents.