Some members expressed concern Monday morning about the economic crisis in Puerto Rico, during FCIB's Global 2015 Conference in Miami. Philip Stafford, director of country risk analytics for Wells Fargo Bank, explained that the country is a territory of the United States and by default receives a positive rating.
Earlier this year, Puerto Rico made headlines for owing $72 billion to its investors, and “from an economic standpoint, it is nothing short of a disaster,” Stafford said during the session, “Country Risk from a Banker's Perspective.” If the commonwealth state stood as it's own country, Stafford said it's risk rating would be much lower. “But technically, Puerto Rico is not a foreign country; it is part of the United States.”
During his session, Stafford spoke in depth about country risk versus credit risk and how the meaning varies depending on the industry. FCIB's Global 2015 Conference wraps up on Tuesday, Oct. 13, with upcoming sessions including, “Demystifying China's Economy-Through Private Data' and 'Trade and Geopolitical Risk.”
- Jennifer Lehman, NACM marketing and communications associate