Top countries with the highest sovereign ratings. Who�s at risk of being downgraded?

Australia and Austria

Australia, the only country that comprises the mainland of the Australian continent, the sixth largest country by total area, has a sovereign long-term credit rating of AAA, both in local currency and foreign currency categories.

The country Australia races head to head is Austria that was assigned the same top-grade AAA rating by S&P.

S&P’s outlook on Australia and Austria are stable, and the countries’ short-term credit ratings is A-1+, the highest rating assigned by S&P.

Australia is also a top 10 most popular FDI destination, according to an AT Kearney Foreign Direct Investment Confidence survey.

By the ease of doing business, Australia takes the ninth spot and Austria 28, according to Ease of Doing Business 2010 report.

Canada

S&P assigned the same AAA rating to Canada, the second largest country in the world by total area after Russia. S&P’s outlook on Canada’s rating is also stable.

Canada’s short-term credit rating is A-1+.

Canada is the ninth most attractive FDI destination and eight by the ease of doing business.

Denmark and Switzerland

Denmark and Switzerland are also the world’s top performing economies, with a rating of AAA and outlook stable.

Denmark, the smallest and oldest north-European country, is also the ranked sixth in the world by the ease of doing business while Switzerland stands on 21, but none of them are included in the top 25 most attractive FDI destinations.

Finland and France

Finland and France also enjoy a comfortable top AAA credit rating from S&P.

By the ease of doing business, Finland ranks 16th and France 31st.

Germany

Germany is the largest economy in Europe and fourth in the world by the size of GDP. It is assigned AAA rating by S&P, for which outlook is stable.

The country’s great economic performance seems to lure investors too, and takes an honorable fifth spot in AT Kearney’s top 25 most attractive FDI destinations.

However, Germany’s regulatory environment is not quite business-friendly, and is ranked 25th in the Ease of Doing Business list.

Liechtenstein and Luxembourg

After building a strong reputation as a tax heaven, Liechtenstein’s sovereign credit rating is still AAA, despite the numerous controversies on tax evasion.

Liechtenstein was included in OECD’s last year’s list of tax heavens.

Luxembourg scores a top AAA rating, but occupies a low rank by the ease of doing business – 64.

S&P’s outlook on both countries is stable.

The Netherlands and Norway

The Netherlands and Norway also secured an AAA rating from S&P, but neither Norway nor the Netherlands is among 25 most attractive FDI destinations for 2010.

The good part is that Norway takes the 10 spot in the ease of doing business list, but the Netherlands takes 30th.

Singapore and Sweden

Singapore, the smallest country in South-East Asia, received the AAA rating, and a stable outlook from the US-based rating agency.

Singapore came out first in the AT Kearney’s ease of doing business list, followed by New Zealand, and China (Hong-Kong). Singapore is also the 24th most attractive FDI destination in the world.

Sweden gets the same top-grade rating with stable outlook, but scores a mere 28 in the Ease of Doing Business list.

United Kingdom

United Kingdom, one of the world’s strongest economies achieves the top-grade AAA rating from S&P, outlook stable.

But even though the outlook is stable, United Kingdom is at risk of losing the top spot, as financial crisis boosted its debt load.

UK is also the tenth most attractive FDI destination and ranks fifth by the ease of doing business.

United States of America

World’s most powerful economy, United States of America, remains the best rated country in the world, but S&P says outlook is negative.

The probability of losing its rating is even higher than in the case of United Kingdom, since it’s expected to record higher debt costs.

USA is the second most attractive FDI destination and fourth in terms of ease of doing business.