Standard & Poor's credit classified Iraq for the first time 9/4
Standard & Poor's credit classified Iraq for the first time
Standard & Poor's said it ranked first sovereign debt of Iraq and awarded him the degree of "B minus", and attributed the granting of this low-grade credit to the gravity of the threats to the country, most notably the circuit between Iraqi forces and war organization of the Islamic state.
American foundation said in a statement that "Iraq faces security and institutional risk", pointing out that these risks are "the highest among all the countries that are its sovereign debt evaluation."
Standard & Poor's reported that there are difficulties in establishing permanent institutions in Iraq because of the existing divisions between the constituent communities of the country, and between risk also pressure on the budget due to the large drop in oil prices globally, which constitutes a significant risk to investors.
On the other hand, the institution pointed out that Iraq has huge reserves and has significant oil exports, which prompted Standard & Poor's to attach a credit rating outlook stable outlook, pointing out that the economic growth of the country will remain stable in the medium term due to the surge in crude production, which will ease pressures on the budget.
And Iraq is expected to grow by 5% in the next three years, according to Standard & Poor's estimates that the economy will grow this year by 0.3%, the Foundation also expects oil production of the country in the past year increases of 3.1 million barrels per day to five million a year 2018.
The Fitch credit rating awarded Iraq early August / August last for the first time assigned a credit and gave him the same degree awarded by Standard & Poor's, while not issued by Moody's reducing time any classification, and are the three largest institutions and rating agencies and credit in the world.
And comes Baghdad for the first credit ratings as it seeks to issue bonds international value of five billion dollars, it is the first since 2006, in order to rebalance the public finances of the country, which are found in a difficult situation as a result of declining oil revenues and rising government spending.