Fitch Confirms Iraq Rating at ‘B-‘ with Stable Outlook
Fitch Ratings recently announced that they’ve confirmed Iraq’s credit rating at ‘B-‘ with a stable outlook. The rating reflects a high level of political risk, poor governance, and heavy reliance on commodities. As Iraq gradually increases oil production to cover their growing expenses, they plan to reach 4.54 million barrels per day by 2026.
The budget deficit is expected to rise from 2.0 percent of GDP in 2023 to 8.0 percent in 2024 and average 12.4 percent between 2025 and 2026. Fitch Ratings is among the three leading statistical rating agencies recognized by the US Securities and Exchange Commission. Their credit ratings help investors assess the ability of governments and financial institutions to meet their obligations. This information assists in evaluating investment risks.
Ratings range from ‘AAA’ for the safest grade to ‘D’ for a high risk of default. Fitch Ratings plays a crucial role in global investment decisions and credit risk evaluations by conducting detailed financial analysis covering areas like economic performance, public debt, political stability, and the overall economic environment.
