Assessment of country risk by promethee method

In today's globalizing world, investments and capital movements are shaped according to the credit ratings of countries. Therefore, international credit rating agencies play a key role in the countries in need of fund access to the fund they need. The credit ratings announced by these institutions reveal the debt payment capacity of the countries. Country risk is also used as a criterion in giving these grades. Country risk includes the socio-political conditions as well as the economic and financial situation of the countries. In this study, 14 countries which are in similar qualifications and risk with Turkey evaluated with the help of PROMETHEE. Findings obtained by PROMETHEE method was compared notes issued by the credit rating agencies. Two different scenarios are examined in the study. As a result of both scenarios, it has been observed that India and China are the best alternatives in terms of country risk and the credit ratings provided by the credit rating agencies of these countries are the best. While Scenario 1 produces results almost entirely consistent with credit rating agencies, surprise findings were also found in Scenario 2. Turkey has taken place in the last row in both two scenarios and credit ratings rankings. As a result of the study, the criticism of being biased to credit rating agencies was evaluated as severe.