Fitch Maintains Iraq’s ‘B-‘ Rating with Stable Outlook
Fitch Ratings just made an announcement about Iraq’s credit rating – it’s holding steady at ‘B-‘ with a stable outlook. This rating takes into account factors like political risk, governance concerns, and the country’s reliance on commodities.
According to Fitch Ratings, Iraq plans to ramp up its oil production, aiming for 4.28 million barrels per day in 2025 and 4.54 million in 2026. However, this increased output means the country’s budget deficit is expected to jump from 2.0 percent of GDP in 2023 to a whopping 8.0 percent in 2024, with an average of 12.4 percent over 2025-2026.
Fitch Ratings is recognized by the US Securities and Exchange Commission as one of three major credit rating agencies. They assess risks to help investors and institutions understand if governments and financial organizations can meet their obligations.
Their ratings run from ‘AAA’ (the safest bet) to ‘D’ (a serious risk for default). It’s an essential tool for investors to measure their risks based on a country or firm’s economic performance, debt levels, stability, and the overall global economic environment.
