Euro Cuts Estonia Risk as Prudence Rewarded Amid Greek Woes

Euro adoption has helped Estonia distance itself from all but the strongest European economies in terms of credit risk as eastern states such as Poland waver in their ardor for the currency, shaken by a sovereign-debt crisis.

Estonia, the third-riskiest European Union member two years ago, is now among the 10 best. Its five-year credit-default swaps traded at 87 basis points today, followed by France at 83.7, the Czech Republic at 83, Austria at 68.7 and the U.K. at 66, according to data provider CMA. Poland’s CDS were at 159.6.