D&B rates Albania as moderately risky with deteriorating trend

By bne IntelliNews April 10, 2014

Albania's economy is rated as moderately risky and the country's overall risk profile has been on a deteriorating trend, US commercial information and analysis company Dun & Bradstreet (D&B) said in its March 2014 RiskLine report. The rating (DB4c) implies a significant uncertainty over expected returns, while the deteriorating trend arises from adverse political, commercial, economic and external developments.

In terms of the trade and commercial environment, the report notes that businesses operating in the country should be alert to the risk of flooding due to snow melting. There is also a risk of landslides affecting transport links given that many road and rail lines are situated along unstable slopes. Businesses need to be prepared for delays and complications when transporting goods through out the country’s territory and across the country’s external border.

From macroeconomic point of view, the outlook for growth has improved. Given the burden of indebtedness and other impediments in the domestic economy, the primary source of growth will be exports. Producers of commodities, electricity and manufactured products, such as textiles and footwear, will benefit from greater overseas sales and generate positive spillover effects for various ancillary industries.

As regards to risk factors, D&B positively assesses the government’s commitment to improve the collection rate for electricity consumption. The authorities have set a task force with the idea to compel debtors to settle their arrears. According to the state, about EUR 140mn goes unpaid each year, and that 90% of households and 80% of businesses are in arrears to the power distributing company.

D&B bnoted that the political risk has risen after the European Council rejected Albania’s application for the status of candidate for membership of the EU at the end of 2013. This followed objections by major states such as the UK, France and Germany that Albania had not yet proved its readiness against indicators such as corruption and institutional stability.

The DB risk indicator provides a comparative, cross-border assessment of the risk of doing business in a country and encapsulates the risk that country-wide factors pose to the predictability of export payments and investment returns over a two year time horizon.

The indicator is a composite index of four over-arching categories: political risk, commercial risk, external risk and macroeconomic risk. It is divided into seven bands, ranging from DB1 through DB7.

Related Articles

Kosovan PM sceptical about Western Balkans common market

There would be little advantage for Kosovo to join a common market with fellow Western Balkan countries, Prime Minister Isa Mustafa wrote on his Facebook page after EU Commissioner ... more

Effigy of Albanian PM burned at protest

Supporters of Albania’s main opposition Democratic Party (DP) set fire to an effigy of Prime Minister Edi Rama at a protest on March 18, a video of the protest posted on YouTube ... more

US puts Albania, Bosnia and Serbia on blacklist of major money laundering countries

The US department of state has included Albania, Bosnia & Herzegovina and Serbia in its latest list of major ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss