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With a stable outlook, Fitch confirms Iraq at ‘B-‘
Amr Salem November 28, 2024 652 2 min
The emblem of Fitch Ratings is shown on an office building. Photo: AFP
Baghdad (IraqiNews.com) – Fitch Ratings affirmed on Thursday Iraq’s credit rating at ‘B-‘ with a stable outlook.
The US credit rating agency said in a statement that
Iraq’s ‘B-‘ rating is a reflection of its high level of political risk, poor governance, and heavy reliance on commodities.
As the government gradually eliminates production cutbacks to cover increased spending, Iraq’s oil output will rise to 4.28 million barrels per day in 2025 and 4.54 million by 2026, according to Fitch Ratings.
Iraq’s budget deficit is projected to increase from 2.0 percent of GDP in 2023 to 8.0 percent of GDP in 2024, with an average of 12.4 percent throughout 2025–2026.
Fitch Ratings is one of the three statistical rating agencies recognized by the US Securities and Exchange Commission.
In order to assist investors and institutions in evaluating risks, the agency offers credit ratings that represent the capacity of governments and financial institutions to fulfill their commitments.
The ratings, which assist in gauging investment risks, vary from ‘AAA’ to ‘D,’ with ‘AAA’ signaling the highest and safest grade and ‘D’ indicating a significant default risk.
The organization is a major actor in international investment choices and credit risk assessment since it depends on thorough financial analysis that covers economic performance, public debt, political stability, and the global economic climate.
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Amr Salem November 28, 2024 652 2 min
The emblem of Fitch Ratings is shown on an office building. Photo: AFP
Baghdad (IraqiNews.com) – Fitch Ratings affirmed on Thursday Iraq’s credit rating at ‘B-‘ with a stable outlook.
The US credit rating agency said in a statement that
Iraq’s ‘B-‘ rating is a reflection of its high level of political risk, poor governance, and heavy reliance on commodities.
As the government gradually eliminates production cutbacks to cover increased spending, Iraq’s oil output will rise to 4.28 million barrels per day in 2025 and 4.54 million by 2026, according to Fitch Ratings.
Iraq’s budget deficit is projected to increase from 2.0 percent of GDP in 2023 to 8.0 percent of GDP in 2024, with an average of 12.4 percent throughout 2025–2026.
Fitch Ratings is one of the three statistical rating agencies recognized by the US Securities and Exchange Commission.
In order to assist investors and institutions in evaluating risks, the agency offers credit ratings that represent the capacity of governments and financial institutions to fulfill their commitments.
The ratings, which assist in gauging investment risks, vary from ‘AAA’ to ‘D,’ with ‘AAA’ signaling the highest and safest grade and ‘D’ indicating a significant default risk.
The organization is a major actor in international investment choices and credit risk assessment since it depends on thorough financial analysis that covers economic performance, public debt, political stability, and the global economic climate.
[You must be registered and logged in to see this link.]
