Risk of financial distress prevalent across the country
7 September 2009
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A third of the country remains in the danger zone for financial distress despite signs that economic conditions are improving, with thirty three percent of Australia's postcodes designated a high risk rating on Dun & Bradstreet's Geographic Risk Indicator.
The Geographic Risk Indicator assesses the likelihood of future default on a credit obligation based on demographic data. Those areas categorised as a high risk are 340 percent more likely than average to be inhabited by individuals who have experienced previous negative credit events.
The current geographic risk assessment reveals that thirty three percent of suburbs nationally are rated a high risk, with Victoria having the most significant percentage of postcodes (forty six percent) classified in this way. A substantial portion of postcodes in Western Australia and New South Wales are also rated high risk, at thirty five and thirty percent respectively. Meanwhile, South Australia and Queensland fall just shy of having thirty percent of their postcodes rated a high risk.