ECGC upgrades Brazil's risk rating

The Export Credit Guarantee Corporation of India Limited has upgraded the country rating of Brazil whereby an open cover of 90 per cent with the normal waiting period of four months will be provided for Indian exports to that country.

This move would reduce credit insurance cost of Indian exporters to Brazil and promote exports.

The ECGC classifies countries into seven groups, A1, A2, B1, B2, C1, C2 and D, in the ascending order of payment risks perceived for exports from India and Brazil's upgradation in rating is from 'C1' to 'B1'.

The decision to upgrade Brazil's rating was pursuant to a recent review of payments risks for exports from India to Latin American countries, the ECGC said in a statement.

Earlier, the Corporation had upgraded certain other Latin American countries and removed a few countries like Mexico from restricted cover to open cover classification.

Among the Latin American countries, the best rating of A2 group has been given to Chile by the ECGC.

The corporation had recently brought Syria into the open cover category from the earlier restricted category.

PTI

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