Last update: 2020-12-31 - Credit rating table
The Sovereign Wikirating Index (SWI) uses the following five criteria (with weights):
- Public debt (in % of the GDP) — 50% weight
- Account balance (in % of the GDP) — 20% weight
- GDP growth rate — 10% weight
- Inflation rate — 10% weight
- Unemployment rate — 10% weight
The resulting value is adjusted by multiplying it with a Scaling factor, which is composed by the Human Development Index (HDI) (60% weight), the Corruption Perceptions Index (20% weight) and the Political Instability Index (20% weight).
Each criterium is calibrated with respect to the relative minimum and maximum value of all countries. For some criterion a threshold value is defined in order to avoid distorted values. The calculated values are done with a spreadsheet (wr_swi_method+data_2011-09-26.xls).
|Short Title||Long Title||Value||Weight||Real Min||Real Max||SWI Min||SWI Max|
|HD||Human Development Index||Weighted index of development indicators||0.6||0||1||0||1|
|CO||Corruption Perceptions Index||Index of perceived corruption||0.2||0||10||0||1|
|PI||Political Instability Index||Index of political instability||0.2||0||10||0||1|
|PD||Public Debt||Debt/GDP as %, reflects the economies ability to honour loans.||0.5||0||inf||15||90|
|AB||Current Account Balance||Current account balance as % of GDP, reflects foreign inflows and outflows.||0.2||-inf||+inf||-20||20|
|PG||GDP Growth||Domestic growth an an annual %||0.1||-1||inf||-0.1||0.1|
|IR||Consumer Price Index||CPI as %||0.1||-1||inf||0.02||0.2|
|UR||Unemployment Rate||Rate of unemployment as %||0.1||0||1||0.03||0.3|
|R||Rating||Result of SWI calculation||1||0||100||0||100|
General Variable Modifiers
For example, the variable AB.
- AB = Number used in calculations for SWI.
- rAB = Raw or real value, actual data from source in whichever format it is acquired.
- wAB = Weighting value for the data.
- minAB = Floor value of variable, will cause ABC to equal 0 or 100 if ABC is below this value.
- maxAB = Ceiling value of variable, will cause ABC to equal 0 or 100 if ABC is above this variable.
- nAB = Number of ratings (for rating)
So for instance, if the real value (rAB) was 4 on a 10 point scale, this would be divided by 10 to create the value for calculations (AB) which, in calculations, is multiplied by the weighting (e.g. 0.5 for 50% weight.)
- HD =
- CO =
- PI =
Applies to: PD, AB, PG, IR, UR
- List of countries by credit rating (SWI)
- List of countries by credit rating - comparison with SWI method