Fitch maintains Iraq's rating with a stable outlook

Fitch maintains Iraq's rating with a stable outlook



07/12/2017

Economy News _ Baghdad

The Fitch Ratings International said it has maintained its rating of Iraq unchanged with a stable outlook.
 
"Fitch said in a statement read by the Economist News on Thursday that it affirmed its rating of the risk of default in foreign currency in term Long at "B-".
 
Three months ago, Standard & Poor's affirmed its credit rating for Iraq at B- / B with a stable outlook, but expected oil production cuts to affect economic growth in 2017.
 
Fitch expected Iraqi production and exports to stabilize at high levels Next year 2018.
 
Iraq, the second largest oil exporter in the Organization of Petroleum Exporting Countries, "OPEC", which agreed last weekend, to extend the agreement to reduce oil production until the end of 2018, to restore the balance between supply and demand, and then improve oil prices.

Iraq relies on revenues from the sale of oil to finance up to 95 percent of state expenditure.
 
The fall in crude prices since 2014 has had a major impact on the Iraqi economy.
 
Fitch said Baghdad's implementation of an agreement with the International Monetary Fund (IMF) on a three-year demand loan was running slower than planned.
 
In May 2016, Iraq agreed with the International Monetary Fund (IMF) to lend it $ 5.4 billion in an agreement that could then lead to additional $ 15 billion in international aid in the next three years.
 
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