Ratings Methodology
Our unique approach to measuring AGR focuses on the key categories of risk that are critical to the mining industry. For each of the four broad categories of risk listed in the chart below – geo-political, regulatory/business climate, environmental, and social – a country receives a cumulative score between 0-25 points, with higher scores indicating lower levels of risk (the categories of risk are described in detail below). The 25 points, in turn, are derived from a ranking on each of the five sub-issues, with each sub-issue being ranked on a scale between 0-5 points (again, higher scores indicate lower levels of risk). The cumulative score for a country is therefore derived on a scale of 0-100.
Once the cumulative score is available, it is converted into a letter score. There are nine letter scores: AAA, AA, A, BBB, BB, B, CCC, CC, C. Each of the letter scores corresponds to a point range, as described below.
What the Scores Mean
Once the scores are accumulated for countries important to the mining industry, countries are placed into “scoring bands,” with letter grades assigned to specific numbers. The following table summarizes these bands and their meaning:
| AGR Rating |
Raw Score |
What it Means |
| AAA |
91-100 |
- Predictability of above-ground conditions: High
- Probability of downside event: None/Low
- Probable impact of downside event: None/Low
|
| AA |
81-90 |
- Predictability of above-ground conditions: High
- Probability of downside event:
Low
- Probable impact of downside event:
Low
|
| A |
71-80 |
-
Predictability of above-ground conditions:
Medium/High
- Probability of downside event: Low
- Probable impact of downside event: Low
|
| BBB |
61-70 |
- Predictability of above-ground conditions:
Medium
- Probability of downside event:
Medium
- Probable impact of downside event:
Medium
|
| BB |
51-60 |
- Predictability of above-ground conditions:
Medium/Low
- Probability of downside event: Medium
- Probable impact of downside event: Medium/High
|
| B |
41-50 |
- Predictability of above-ground conditions:
Low
- Probability of downside event: Medium/High
- Probable impact of downside event: Medium/High
|
| CCC |
31-40 |
- Predictability of above-ground conditions:
Low/None
- Probability of downside event: Medium/High
- Probable impact of downside event: Medium/High
|
| CC |
21-30 |
- Predictability of above-ground conditions:
None
- Probability of downside event: Medium/High
- Probable impact of downside event: High
|
| C |
0-20 |
- Predictability of above-ground conditions: None
- Probability of downside event: High
- Probable impact of downside event: High
|
