Greece tops the list of the ten most risky sovereign countries seen as most likely to default on debt and unable to honor its debt obligations. In the report “Sovereign Risk Report for Q4 2010″ released by world’s leading credit default swap (CDS) pricing service, CMA of London, Greece is followed by Venezuela, Ireland and Portugal.
The rankings are based on CMA’s calculations, which include the cumulative probability of default.
Greece, which received a 110 billion euro European Union-led bailout last May, pipped Venezuela as the world’s riskiest sovereign. It had been in the list’s top 10 throughout 2010.
Greek five-year credit default swaps were quoted at 1,026.5 basis points at the year’s end. This means it cost just over $1 million to insure exposure to $10 million of Greek debt over a five-year period. The CDS rose 32% in the fourth quarter, CMA said.
To view the full CMA Report please click: here
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