"Fitch" adjusts the outlook for Iraq from stable to negative

by **claud39** Thu Apr 16, 2020 2:11 pm

"Fitch" adjusts the outlook for Iraq from stable to negative

04/16/2020

"Fitch" adjusts the outlook for Iraq from stable to negative 58893c942f052_f58959e5-4043-491a-8240-e2e36f379c43

Shafaq News / Fitch news agency announced, on Thursday, that the credit rating of Iraq will be fixed at "B-" while adjusting the outlook from stable to negative.

And the "Fitch" credit rating, in a report, said that political risks are still a basic constraint on the classification of Iraq, along with the economic repercussions of the outbreak of the Corona virus.

Iraq obtained the lowest rank among all the countries ranked by the agency, in the World Bank's Composite Management Index, which reflects the extent of corruption, government inefficiency and weak institutions, along with insecurity and political instability.

The agency expected that the external finance of Iraq would deteriorate sharply, with the current account deficit falling to 16 percent and 6 percent of GDP in 2020 and 2021.

According to the report, forecasts indicate that the country's international reserves (including gold) will drop to $ 25 billion by the end of 2021, a drop of more than $ 40 billion over two years.

He continued: "The classification of Iraq was affected by the risks associated with the continuing tensions between the United States and Iran, large-scale protests, and greater fragmentation among political groups, to undermine the effectiveness of the government over the past year."

He pointed out that the confirmation of the classification is due to the current high level of international reserves for Iraq, and low debt service obligations and international financial support.

And the reserves of Iraq reached 66.7 billion dollars at the end of 2019 (8 months of current external payments), then it decreased to 62.9 billion dollars at the end of February, with more severe declines expected from March onwards.

https://www.shafaaq.com/ar/%D8%A7%D9%82%D8%AA%D8%B5%D9%80%D8%A7%D8%AF/%D9%81%D9%8A%D8%AA%D8%B4-%D8%AA%D8%B9%D8%AF%D9%84-%D8%A7%D9%84%D9%86%D8%B8%D8%B1%D8%A9-%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D9%82%D8%A8%D9%84%D9%8A%D8%A9-%D9%84%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D9%86-%D9%85%D8%B3%D8%AA%D9%82%D8%B1%D8%A9-%D8%A5%D9%84%D9%89-%D8%B3%D9%84%D8%A8%D9%8A%D8%A9/

by **claud39** Sat Apr 18, 2020 11:13 am

[size=41]With its reserves declining, Iraq at the bottom of the list of "negative" countries in the credit ratings[/size]

2020-04-17

"Fitch" adjusts the outlook for Iraq from stable to negative Thumbs_b_c_6fe9e944c7626e9ac26d3e3ad78af384

Follow Iraq:

"Fitch" credit rating agency issued its periodic credit report to countries of the world, as it confirmed the credit rating of Iraq at "B-" with a modified outlook from stable to negative.

And, "Fitch" in her report, followed by "Iraq," that "political risks remain a major constraint on the classification of Iraq, along with the economic repercussions of the outbreak of the Corona virus."

And Iraq ranked 34th, the lowest among all the countries ranked by the agency, in the World Bank management index, which reflects the extent of corruption, government inefficiency and weak institutions, along with insecurity and political instability.

The agency expected that "the external finance of Iraq will deteriorate sharply, with the current account deficit falling to 16%, and 6% of GDP, in 2020 and 2021."

According to the report, the forecasts indicate "the decline in the country's international reserves (including gold) to 25 billion dollars by the end of 2021, which is a decrease of more than 40 billion dollars over two years," adding that "the classification of Iraq was affected by the risks associated with the continuing tensions between the states The United States and Iran, widespread protests, and greater fragmentation among political groups, as this undermined the government's effectiveness over the past year. ”

He pointed out that "confirmation of the classification is due to the current high level of international reserves for Iraq, and low debt service obligations and international financial support."

And the reserves of Iraq reached 66.7 billion dollars at the end of 2019 (8 months of current foreign payments), then it decreased to 62.9 billion dollars at the end of last February, with sharper declines expected from March onwards.

https://yesiraq.com/%D9%85%D8%B9-%D8%AA%D8%B1%D8%A7%D8%AC%D8%B9-%D8%A7%D8%AD%D8%AA%D9%8A%D8%A7%D8%B7%D8%A7%D8%AA%D9%87-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%8A%D8%AA%D8%B0%D9%8A%D9%84-%D9%82%D8%A7%D8%A6%D9%85%D8%A9/