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Quick ascent for Germany: BlackRock
Germany's sovereign risk outlook has improved, according to the BlackRock Sovereign Risk Index (BSRI) for the first quarter of 2012.
An increase in perceived government stability, especially in relation to eurozone counterparts, has seen Germany increase their spot in the index by four places at the end of the first quarter.
While Germany experienced a quick ascent, Denmark, Chile and Australia moved down in the ranks.
Steve Miller, head of fixed income for BlackRock Australia, said Australia's shift is largely due to the quick rise of Germany's sovereign risk outlook.
"Falls in Australian sovereign bond yields this year suggest that international investors continue to be encouraged by Australia's quality public debt metrics relative to their views about the circumstances of many other developed countries," he said.
Miller said bipartisan support for maintaining the Commonwealth's fiscal integrity and the Federal Budget are likely to bolster those perceptions.
The BSRI included an additional four countries in 2012, examining a total of 48.
Of the new players, Singapore and Taiwan featured in the top ten, although BlackRock said they were not model citizens when it came to net debt levels and noted their debt is held almost exclusively by domestic players.
Slovakia and Slovenia - the remaining newcomers - joined eurozone counterparts in the bottom half of the index.
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