Iraq maintains its credit rating at B-/B with stable outlook
The headquarters of Standard & Poor’s in Manhattan, New York City. Photo: AFP
Baghdad (IraqiNews.com) – The Iraqi Ministry of Finance confirmed on Tuesday that Iraq maintained its credit rating at B-/B, with a stable outlook, according to a statement cited by the Iraqi News Agency (INA).
The ministry’s statement mentioned that Iraq maintained its credit rating at B-/B with a stable outlook, in the latest report issued by Standards & Poor’s (S&P), with an emphasis on financial and economic stability, according to the agency’s report.
The new credit rating is a reflection of the policy of continuous economic and financial reforms adopted by the Iraqi Ministry of Finance, the statement explained.
The ministry elaborated that the rise in crude oil prices helps the government to preserve a level of foreign exchange reserves exceeding the external public debt, and fulfill other external financial obligations.
S&P’s report indicated the possibility of improving Iraq’s credit rating if Iraq’s economic growth rose, oil and non-oil public financial revenues diversified, gross domestic product (GDP) per capita increased, and measures of financial and economic policy reform continued, the statement added.
In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Iraq thus having a big impact on the country’s borrowing costs, according to Trading Economics.