To know the rating approach of banks/rating agencies is crucially important for all the companies trying to approach banks with good projects, with a projects with higher probability of acceptance.
As we may know Hong Kong is for a long time a financial center of Greater China (Taiwan, China, Hong Kong). For all the foreign companies operating in the region it is, in many cases, the best location for the financial, cash flow and legal services. We shall do business within mainland or Taiwan, but we would always suffer by the local approach as long, as we just do sell, produce or purchase within countries, but let all cash flow, financing or legal aid to be happening in HK.
This rating matrix shows the relationship between rating of the country and the probability of default. We may also observe a small example of the countries following the recent Standard & Poor's rating model. The probability of default was derived from BASEL III ECAI Plus.
In other words we may say, that the risk of default of Finland is 10.1 smaller, than China's one and 25x smaller than Malaysian one. The risk of default of Cyprus is 15,6567%.
We may also see, that a risk of Taiwan, China and Hong Kong is different. China's risk is 0,0333 on the way up to 0,0834% with stable outlook, Taiwan's risk is the same. Hong Kong risk is 10.1 times smaller with stable outlook. This is important fact to consider.
For current data on rating please follow Wikipedia - List of countries by credit rating
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