## Latvia - B

Debt/GDP = 0,45 (45%)
Accumulated deficit for last 5 years/budget income for last 5 years = 0,147
Years since last default = 21 (Independent since 1991)
5-year inflation = 0,30 (30%)
Budget expences/GDP = 0,39
World GDP per capita/Country GDP per capita = 0,72
Political factor = 0,2
Crisis factor = 0,4 (involved in current war - Afghanistan)
Other unique factors = 1,5

OVERALL CREDIT SCORE: 0,651 (65,1%). This responds to B.

Calculated with this (new) formula:

r = 10/{[1+(debt/GDP)] + [1+10*(accumulated deficit for last 5 years/budget income for last 5 years)] + [1 + (10/years since last default)] + [1+3*(accumulated of last 5 years inflation)] + [1+(budget expences/GDP)] + [1+ 10* (trade deficit/GDP)] + [world's GDP per capita/country's GDP per capita] + [1+political factor] + [1+crisis factor] + [Other unique factors]}

## Iceland - A

Debt/GDP = 1,30 (130%)
Accumulated deficit for last 5 years/budget income for last 5 years = 0,028
Years since last default = 68 (Independent since 1944)
5-year inflation = 0,35 (35%)
Budget expences/GDP = 0,48
World GDP per capita/Country GDP per capita = 0,20
Political factor = 0
Crisis factor = 0
Other unique factors = 1,1 (some financial pressure from abroad)

OVERALL CREDIT SCORE: 0,833 (83,3%). This responds to A.

Calculated with this (new) formula:

r = 10/{[1+(debt/GDP)] + [1+10*(accumulated deficit for last 5 years/budget income for last 5 years)] + [1 + (10/years since last default)] + [1+3*(accumulated of last 5 years inflation)] + [1+(budget expences/GDP)] + [1+ 10* (trade deficit/GDP)] + [world's GDP per capita/country's GDP per capita] + [1+political factor] + [1+crisis factor] + [Other unique factors]}

## Hungary - BBB

Debt/GDP = 0,82 (82%)
Accumulated deficit for last 5 years/budget income for last 5 years = 0,055
Years since last default = 71 (1941)
5-year inflation = 0,24 (24%)
Budget expences/GDP = 0,51
World GDP per capita/Country GDP per capita = 0,66
Political factor = 0,2
Crisis factor = 0,4 (involved in current war - Afghanistan)
Other unique factors = 1,5 (populist government experimenting with economy and democracy)

OVERALL CREDIT SCORE: 0,784 (78,4%). This responds to BBB.

Calculated with this (new) formula:

r = 10/{[1+(debt/GDP)] + [1+10*(accumulated deficit for last 5 years/budget income for last 5 years)] + [1 + (10/years since last default)] + [1+3*(accumulated of last 5 years inflation)] + [1+(budget expences/GDP)] + [1+ 10* (trade deficit/GDP)] + [world's GDP per capita/country's GDP per capita] + [1+political factor] + [1+crisis factor] + [Other unique factors]}