Approach and Ratings | HBDO Fundamental EOL® Index
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