Approach – Countries are classified according to the quality of Entrepreneurship (E), the ease of conducting Operations (O) and the quality of the Legal and regulatory framework (L).

In Doing Business approach, countries are ranked on their ease of doing business, from 1 – 189. A high rating on the EOL®Synthetic Rating Index means the regulatory environment is more conducive to the starting and operation of a local firm. This index averages the country’s percentile rankings on 10 topics (Starting a Business, Dealing with Construction Permits Getting Credit, Paying Taxes, Trading Across Borders, Resolving Insolvency, Getting electricity, Protecting Investors, Enforcing Contracts,  Registering Property) , made up of a variety of indicators, giving equal weight to each topic.

Topics/indicators

Profils Indicators Topics
1-C Entrepreneurship

Starting a Business

2-C Operations

Dealing with Construction Permits

Getting Credit

Paying Taxes

Trading Across Borders

Resolving Insolvency

Getting electricity
3-C Legal

Protecting Investors

Enforcing Contracts

Registering Property

Source: HBDO Indexes by HBDO Research, 2014.

Ratings – HBDO’s short-term EOL® synthetic rating index indicate the potential level of default within a 12-month period. EOL®Rating Index is assigned on an alphabetic scale from ‘’A’’ to ‘’d’’ for each indicators (EOL/Entrepreneurship-Operations-Legal).

 

CATEGORIES

RANK (DB)

 

HBDO RATINGS

 Investment 1-19 A Prime Quality Grade
20-31 a High Quality Grade
32-51 B Upper  Medium Grade
52-100 b Lower Medium Grade
Selective Risk 101-119 C Currently Vulnerable
120-150 c Highly Vulnerable
Non Investment 151-169 D Possibility of selective default
170-189 d In default
NR Not Rated

Source: HBDO Indexes by HBDO Research, 2014.

Ex: HBDO affirms #Peru at ‘bbb’; Outlook Stable – HBDO Indexes | EOL® Synthetic Rating Index by HBDO