Quarterly Country and Sector Risk Ratings Update

This technical report presents the quarterly country and sector risk ratings update, with a specific focus on Türkiye. In the first quarter of 2025, the report details the adjustments made to country ratings, highlighting a downgrade for Senegal and upgrades for 16 other countries, including significant improvements in Spain, Israel, and Hungary. The report outlines the economic conditions contributing to these changes, such as enhanced growth prospects and better financing conditions. It also notes a deterioration in sector risk ratings, with 23 downgrades, particularly in the automotive sector, reflecting ongoing challenges from weak demand and rising input costs. The report emphasizes the impact of recent US tariffs on global trade and the strategic adaptations required by exporters. Additionally, it discusses the economic stabilization in Türkiye amid political developments and monetary policy decisions, indicating a cautious outlook for the region. Overall, the report provides a comprehensive assessment of the evolving risk landscape across various countries and sectors.