Singapore gets top country risk rating

Coface upgrades Singapore’s country rating from A2 to A1 making it the safest place to do business.

The rating was revealed at the Coface Country Risk Conference 2010 held on Tuesday for the first time in Singapore, a Coface report said.

The country rating reflects the extent to which a country’s economic, financial, and political outlook influences financial commitments of local companies. The Country Risk Conference covered international and regional trade post-crisis, focusing on the issues of China-led growth and intra-ASEAN trade in the second half of 2010. The conference was the first in the annual series of conferences held in 12 countries this year around the world.

Minister for Trade and Industry, Mr Lim Hng Kiang, and key international and regional economists including Dr Rajan Govil from the International Monetary Fund, David Carbon of DBS Bank, and Tai Hui of Standard Chartered Bank, among others, attended the event.

“As trade activities grow globally and in the region, there will be a corresponding demand for risk management solutions. A vibrant insurance marketplace will be able to respond to these needs. Singapore can play a key role in providing political risk insurance to companies engaged in cross border investments in the region. We have therefore made efforts to boost capacity and attract expertise in the underwriting of specialised risks, including areas such as trade credit and political risks insurance,” said Mr Lim Hng Kiang, who delivered the keynote address at the Country Risk Conference.

Aside from the country rating, Coface also announced that it forecasts a recovery of 3.6% for World growth in 2010 after a recession in 2009 of -1.6%.