The risk ratings are determined by our global roster of country and political risk experts, and by our editorial staff using the two methodologies.
Our clients include: global asset managers, many of the world’s development banks and lending agencies, academics at universities worldwide, and multinational firms with assets held globally, usually in the manufacturing and natural resource extraction sector. Non-governmental organizations, think tanks, and private equity groups also purchase our reports and data on a regular basis and engage the firm in consulting projects.
PRS’ projections have been tested against foreign investor losses due to political reasons and found to be most accurate. Studies by researchers have found correlations between ICRG data and International Monetary Fund program implementation, sovereign spreads, and bank lending volume. Others have found ICRG data to “provide information that has great predictive value with respect to future equity returns globally,”6 and to help determine the impact of financial asset shortages in emerging markets on economic growth, asset price bubbles, and the probability of a crisis.