Bank QRS is evaluating the possibility of offering loans to enterprises operating within a frontier market country. A credit risk analyst from the bank has carried out an assessment of this country to identify factors that may impact its country risk, providing the following observations:

Item 1: The nation's economy is heavily reliant on oil production, with significant oil reserves. Item 2: The country has recently enacted regulations that make it easier for investors to pursue legal action against companies and their executive teams. Item 3: The nation has recently overhauled its legal system to improve its independence from other governmental branches. Item 4: The nation's sovereign credit spreads have narrowed over the last year.

Which of these factors is most likely to adversely impact the nation's risk assessment?