The Organization for Economic Cooperation and Development has upgraded Iran’s rating in the country risk classifications of the Participants on Officially Supported Export Credits (CRE) from 6 to 5. The last upgrade in Iran’s rating goes back to June 2016, when Iran’s ranking improved from 7 to 6.
This Improvement was announced on last Friday’s Meeting. As the OECD puts it, the country risk classifications are meant to reflect country risk, which is composed of transfer and convertibility risk (i.e. the risk that a government imposes capital or exchange controls that prevent an entity from converting local currency into foreign currency and/or transferring funds to creditors located outside the country) and cases of force majeure (e.g. war, expropriation, revolution, civil disturbance, floods, earthquakes).