Indicator

Meaning

Explanation

DB1

Lowest Risk

 
Lowest degree of uncertainty associated with expected returns, such as export payments, and foreign debt and equity servicing.
 

DB2

Low Risk

 
Low degree of uncertainty associated with expected returns. However, country-wide factors may result in higher volatility of returns at a future date.
 

DB3

Slight Risk

 
Enough uncertainty over expected returns to warrant close monitoring of country risk. Customers should actively manage their risk exposures.
 

DB4

Moderate Risk

 
Significant uncertainty over expected returns. Risk-averse customers are advised to protect against potential losses.
 

DB5

High Risk

 
Considerable uncertainty associated with expected returns. Businesses are advised to limit their exposure and/or select high-return transactions only.
 

DB6

Very High Risk

 
Expected returns subject to large degree of volatility. A very high expected return is required to compensate for the additional risk or the cost of hedging such risk.
 

DB7

Highest Risk

 
Returns are almost impossible to predict with any accuracy. Business infrastructure has, in effect, broken down.