A total of 28 countries spreading from Asia to Oceania were assigned low sovereign ratings in a recent report released by China Export & Credit Insurance Corporation (SINOSURE), which warns Chinese companies about risks associated with overseas investment.

In the annual report, which rates 190 sovereign states across the globe, SINOSURE identified the 28 countries that came in at the bottom of the list. This year was the first time the report included sovereignty ratings. Similar to other sovereignty ratings systems, the SINOSURE report rated countries from AAA (best) to C (worst). The 28 countries rated CC or C included Asian countries like Afghanistan, North Korea, the Maldives and Mongolia, as well as African countries such as Burundi, Chad, Ghana and Sudan. Countries in America and Oceania like Cuba, Dominica, Kiribati, Nauru and Tuvalu were also on the list.

The SINOSURE report pointed out that Chinese companies would face increasingly complicated risks in overseas investment, as geopolitical conflicts and terrorism present unavoidable threats. An uncertain world economy and weak economic and trade growth also pose a challenge.

“Political risk has become a major consideration for Chinese enterprises looking to invest overseas – especially non-traditional risks and government default,” said Huang Zhiqiang, vice president of SINOSURE, at a press conference on Sept. 12.

Of course, risk wasn’t elevated in all countries. The latest version of the report lowered the risk rating of 15 countries, including Iran, Argentina, Iceland and Norway. This is likely because Iran has improved its ties with Western countries, and some European countries are emerging from debt crises.

Meanwhile, 13 countries, including Cambodia, Myanmar, Denmark and Peru, saw their risk ratings rise under the influence of low international oil prices and natural disasters.

SINOSURE is a State-funded, policy-oriented insurance company, established to promote foreign trade and economic cooperation in China. It began operations on Dec. 18, 2001.

At the end of August, SINOSURE was insuring $2.7 trillion, with an indemnity totaling $8.91 billion. SINOSURE currently ranks at the top in the International Union of Credit & Investment Insurers on overall business scale, according to SINOSURE Chairman Wang Yi.