Iraq receives first credit rating ahead of planned [Int'l]bond issue
Iraq receives his first credit rating ahead of a planned bond issue
Twilight News Iraq / got his first sovereign credit rating for the versions on Friday which sought to him ahead of a planned issuance of international bonds worth five billion dollars, it aims to ease the pressure drop in oil prices on public finances of the state.
And it chose Fitch rating B_ with a stable outlook for Iraq which is less than six degrees from investment grade and attributed it to political risks and the lack of security, which said it is one of the most serious risks faced by any sovereign entity receives Atimanaa rated by Fitch.
Fitch also forecast a deficit in dozens of public finances box of Iraq in 2015 because of falling oil prices and increased military spending and costs associated with efforts to fight al Daash in the north and west of the country, as reported by Reuters.
He said Finance Minister Hoshyar Zebari earlier this year that Iraq plans to sell international bonds for the first time in nine years. This could help get a credit rating to convince global investment funds and bank managers to buy bonds.
He said Haitham al-Jubouri member of the Finance Committee in the Iraqi Parliament that the low rating "does not meet the ambitions" but might be considered a starting point for financial Tnmbh.
Jubouri said, "It encourages us to start taking serious steps to reform the Iraqi banking sector and send a strong message to investors and improve our own future economic and financial outlook."
In a move towards increasing investor confidence the World Bank said last month that he would provide loans to Iraq a total value of $ 1.7 billion and the International Monetary Fund reached an agreement earlier in the loan program worth $ 833 million.
Being the owner of the fifth-largest oil reserves in the world can be for Iraq to become an attractive investment for some investors. Oil contributes 40 percent of gross domestic product of Iraq and more than 90 percent of the public finances and the external current transactions revenue.
Said Fitch Ratings said in a statement that "the low production costs. Most of the facilities and infrastructure for the production of oil infrastructure is far from safe areas inside. "
And it will contribute to the recovery of oil prices in improving public financial situation of the government. Fitch expects a slight deficit by 2017.