Fitch Assigns Iraq's First Rating at 'B-'/Stable

[Freedomrules]

Fitch Ratings: Iraqi Economy at Risk of Default

Adding to embattled country's woes, Fitch Ratings grades Iraq lowest possible rating, B-.

 

B

First Publish: 8/7/2015, 3:44 PM

Shia militiamen in Iraq

Reuters

Fitch Ratings graded Iraq Friday as being at risk of default due to insecurity, financial difficulties and poor governance, in its first rating of the country.

The Islamic State terrorist group (ISIS) overran large areas of Iraq last year and the country is still battling to regain ground, while lower oil prices have hit its petroleum-dependent economy.

"Political risk and insecurity are among the highest faced by any sovereign rated by Fitch," the agency said, explaining Iraq's B- rating with a stable outlook.  

All B ratings "indicate that a material default risk is present."

Fitch said it forecasts a double-digit deficit for Iraq this year "owing to lower oil prices, higher military spending and costs associated with civil conflict", and that debt will reach 51 percent of GDP by the end of 2015.

Iraq is almost entirely dependent on oil for funds, and Fitch said the country's non-oil GDP contracted by nine percent last year, a situation that will likely worsen in 2015.

And "Iraq scores the worst of all Fitch-rated sovereigns on the composite World Bank governance indicator, reflecting not only insecurity and political instability but also corruption, government ineffectiveness and weak institutions," it said.

Iraq's inadequate finances have resulted in already poor services worsening even further, sparking nationwide protests in which demonstrators accuse the political class of being incompetent and corrupt.

And while the country's security forces have retaken some areas from ISIS, the jihadists still control large parts of Iraq, including second city Mosul and most of the western province of Anbar.

http://www.israelnationalnews.com/News/News.aspx/199175#.VcUsHfl-41c

[SocalDinar]

Go RV

 

Push the button!

[unirod]

Maybe the Chinese are right! the World Bank and IMF are being managed by morons. Why would you loan money to clowns like Iraq with a gutter credit rating?

[DinarThug]

Fitch Ratings: Iraqi Economy at Risk of Default

Adding to embattled country's woes, Fitch Ratings grades Iraq lowest possible rating, B-.

Son Of A Fitch !

[SnowGlobe7]

this could of gone a lot worse......it is not great be assured, but it "has potential"

[MyLadiesDaddy]

I guess Iraq just needs to be 18 trillion upside down and they could also be rated AAA...........................If anyone believes this debt ridden country we call the USA CORP is deserving of a AAA RATING I have some ocean front property in Arizona i would like to sell.,,,,,,,,as for as ABADI"s  postponement of the bond sales, I get it, It can"t happen before some kind of increase in value.....I'm still believing we are in a good spot.

Essentially that was the point I was attempting to make.

 

They come out with a junk rating the very next day after Abadi 

 

says there're going to postpone the tariffs law, and just a few days 

 

after the IMF and the WTO tell them they got two months to pass the 

 

money laundering law. 

 

And of course, as you so perfectly stated, America deserves a AAA rating 

 

who cares if were nearly twenty trillion in debt with no clear way to even 

 

pay the interest. 

 

Someone is pushing a point, and Iraq had better figure it out fast. 

 

What? Ya'll really think that the timing of these massive street protest is just 

 

a coincidence. UUUHHHHH tell that to Qaddafi. A simple google search will show 

 

that most of these so called, "social uprisings", are orchestrated by none other than

 

our very own CIA.   

[TrinityeXchange]

imho we have to keep one thing in mind.  these ratings help foreign/international investors determine the risk levels of investing in a country.  a country will request an assessment to entice direct foreign investment to their country.  it is not all about how much debt a country has but more about risk to investors.  the united states for instance is a very stable place to invest your money compared to other countries.  iraq on the other hand is definitely not a place for low risk direct foreign investment.  for instance they are still missing necessary investment laws, its banking structure is well immature, the politicians struggle to determine policy, it is currently fighting a war inside of its borders, etc etc.  even though iraq's debt is low (much of it having been forgiven) their overall situation is risky for foreign investment.

 

here is a definition from investopedia that may also help clarify things

 

Another common reason for obtaining sovereign credit ratings, other than issuing bonds in external debt markets, is to attract foreign direct investment. To give investors confidence in investing in their country, many countries seek ratings from credit rating agencies like Standard and Poors, Moody's, and Fitch to provide financial transparency and demonstrate their credit standing.

Read more: http://www.investopedia.com/terms/s/sovereign-credit-rating.asp#ixzz3iBYJE4l7 
Follow us: @Investopedia on Twitter

[NevadaSam]

Great news and now.......when do we hear about the HCL......and then the RV

[sandfly]

I THINK BACK IN MAY I SAID A, BUT B- IS STILL GOOD. SO LET THE MONEY CHANGE HANDS NOW

[DinarThug]

I THINK BACK IN MAY I SAID A

I THINK BACK IN MAY U SAID 'THANKS' ...

2,376 TIMES ...

[sandfly]

AND THAT TOO,

[Nelg]

Good news.  Now let's get it on!!

[DinarThug]

Who Cares About Fitch's Rating - I Just Want To Know What Abercrombie Said ...

[vish]

Maybe the Chinese are right! the World Bank and IMF are being managed by morons. Why would you loan money to clowns like Iraq with a gutter credit rating?

That is subterfuge and/or incomprehension on the part of the Chinese and others such as many US financial adivsors, etc--the truth is that the same people who control the IMF and the WB, also control China (simply research who engineered and funded the start of Chinese communism and who has been systematically outsourcing American industry via CAFRs and trade agreements--NAFTA, for instance--if you guessed elite bankers, you're correct!).  This illusion/propaganda created by the bankers that they are hopeless morons, will help to usher in the gold standard (read: One World Currency) which the majority are TOLD will be like kryptonite to the bankers, but this is thoroughly false.  The joke is on the majority; the gold standard can be as easily manipulated by the elites as fiat currencies.  For more information go to Real Currencies, hosted by Anthony Migchels.  By destroying the US economically with the greatest depression and shifting power to the BRICS nations, the elites can finally gain ultimate control over the US, the last and already fading bastion of freedom.  Who owns the UN?  Who owns and controls the WTO?  The elite bankers.  For more information on CAFRs, go to CAFR1.com--you think the US is bankrupt?  Think again--read about the CAFRs!

[yota691]

International Issuer and Credit Rating Scales

The Primary Credit Rating Scales (those featuring the symbols 'AAA'–'D' and 'F1'–'D') are used for debt and financial strength ratings. The below section describes their use for issuers and obligations in corporate, public and structured finance debt markets. For their use in the context of funds, please refer to the Fund Ratings section.

 

Long-Term Ratings Scales

 

Issuer Credit Rating Scales

 

Rated entities in a number of sectors, including financial and non-financial corporations, sovereigns and insurance companies, are generally assigned Issuer Default Ratings (IDRs). IDRs opine on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the IDR is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, IDRs also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms.

In aggregate, IDRs provide an ordinal ranking of issuers based on the agency's view of their relative vulnerability to default, rather than a prediction of a specific percentage likelihood of default. For historical information on the default experience of Fitch-rated issuers, please consult the transition and default performance studies available from the Fitch Ratings website.

AAA: Highest credit quality.
'AAA' ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA: Very high credit quality.
'AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A: High credit quality.
'A' ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB: Good credit quality.
'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB: Speculative.
'BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

B: Highly speculative.
'B' ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC: Substantial credit risk.
Default is a real possibility.

CC: Very high levels of credit risk.
Default of some kind appears probable.

C: Exceptionally high levels of credit risk.
Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a 'C' category rating for an issuer include:

• a. the issuer has entered into a grace or cure period following non-payment of a material financial obligation;
• b. the issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or
• c. Fitch Ratings otherwise believes a condition of 'RD' or 'D' to be imminent or inevitable, including through the formal announcement of a distressed debt exchange.

 

RD: Restricted default.
'RD' ratings indicate an issuer that in Fitch Ratings' opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include:

• a. the selective payment default on a specific class or currency of debt;
• b. the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation;
• c. the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or
• d. execution of a distressed debt exchange on one or more material financial obligations.

 

D: Default.
'D' ratings indicate an issuer that in Fitch Ratings' opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

"Imminent" default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice.

Note:
The modifiers "+" or "-" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the 'AAA' Long-Term IDR category, or to Long-Term IDR categories below 'B'.

Limitations of the Issuer Credit Rating Scale:

Specific limitations relevant to the issuer credit rating scale include:

• The ratings do not predict a specific percentage of default likelihood over any given time period.
• The ratings do not opine on the market value of any issuer's securities or stock, or the likelihood that this value may change.
• The ratings do not opine on the liquidity of the issuer's securities or stock.
• The ratings do not opine on the possible loss severity on an obligation should an issuer default.
• The ratings do not opine on the suitability of an issuer as a counterparty to trade credit.
• The ratings do not opine on any quality related to an issuer's business, operational or financial profile other than the agency's opinion on its relative vulnerability to default.

Ratings assigned by Fitch Ratings articulate an opinion on discrete and specific areas of risk. The above list is not exhaustive, and is provided for the reader's convenience. Readers are requested to review the section Understanding Credit Ratings — Limitations and Usagefor further information on the limitations of the agency's ratings.

Corporate Finance Obligations — Long-Term Rating Scales

Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.

The relationship between issuer scale and obligation scale assumes an historical average recovery of between 30%–50% on the senior, unsecured obligations of an issuer. As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the same as that entity's issuer rating or IDR. At the lower end of the ratings scale, Fitch Ratings now additionally publishes explicit Recovery Ratings in many cases to complement issuer and obligation ratings.

AAA: Highest credit quality.
'AAA' ratings denote the lowest expectation of credit risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA: Very high credit quality.
'AA' ratings denote expectations of very low credit risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A: High credit quality.
'A' ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB: Good credit quality.
'BBB' ratings indicate that expectations of credit risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB: Speculative.
'BB' ratings indicate an elevated vulnerability to credit risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial alternatives may be available to allow financial commitments to be met.

B: Highly speculative.
'B' ratings indicate that material credit risk is present^†.

CCC: Substantial credit risk.
'CCC' ratings indicate that substantial credit risk is present^†.

CC: Very high levels of credit risk.
'CC' ratings indicate very high levels of credit risk^†.

C: Exceptionally high levels of credit risk.
'C' indicates exceptionally high levels of credit risk^†.

Defaulted obligations typically are not assigned 'RD' or 'D' ratings, but are instead rated in the 'B' to 'C' rating categories, depending upon their recovery prospects and other relevant characteristics. This approach better aligns obligations that have comparable overall expected loss but varying vulnerability to default and loss.

Notes:
The modifiers "+" or "-" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the 'AAA' obligation rating category, or to corporate finance obligation ratings in the categories below 'CCC'.

The subscript 'emr' is appended to a rating to denote embedded market risk which is beyond the scope of the rating. The designation is intended to make clear that the rating solely addresses the counterparty risk of the issuing bank. It is not meant to indicate any limitation in the analysis of the counterparty risk, which in all other respects follows published Fitch criteria for analyzing the issuing financial institution. Fitch does not rate these instruments where the principal is to any degree subject to market risk.

 

† Table of the Relationship between Performing and Non-performing Corporate Obligations in Low Speculative Grade (Recovery Ratings are discussed in their own section)

Obligation 
Rating Performing Obligation Non-performing Obligation B 
Category Default risk is commensurate with an IDR in the ranges 'BB' to 'C'. For issuers with an IDR below 'B', the overall credit risk of this obligation is moderated by the expected level of recoveries should a default occur.

For issuers with an IDR above 'B', the overall credit risk of this obligation is exacerbated by the expected low level of recoveries should a default occur. The obligation or issuer is in default, or has deferred payment, but the rated obligation is expected to have extremely high recovery rates consistent with a Recovery Rating of 'RR1'. CCC 
Category Default risk is commensurate with an IDR in the ranges 'B' to 'C'.

For issuers with an IDR below 'CCC', the overall credit risk of this obligation is moderated by the expected level of recoveries should a default occur.

For issuers with an IDR above 'CCC', the overall credit risk of this obligation is exacerbated by the expected low level of recoveries should a default occur. The obligation or issuer is in default, or has deferred payment, but the rated obligation is expected to have a superior recovery rate consistent with a Recovery Rating of 'RR2'. CC 
Category Default risk is commensurate with an IDR in the ranges 'B' to 'C'.

For issuers with an IDR below 'CC', the overall credit risk of this obligation is moderated by the expected level of recoveries should a default occur. 

For issuers with an IDR above 'CC', the overall credit risk of this obligation is exacerbated by the expected low level of recoveries should a default occur. The obligation or issuer is in default, or has deferred payment, but the rated obligation is expected to have a good recovery rate consistent with a Recovery Rating of 'RR3'. C 
Category Default risk is commensurate with an IDR in the ranges 'B' to 'C'.

The overall credit risk of this obligation is exacerbated by the expected low level of recoveries should a default occur. The obligation or issuer is in default, or has deferred payment, and the rated obligation is expected to have an average, below-average or poor recovery rate consistent with a Recovery Rating of 'RR4', 'RR5' or 'RR6'.

 

Limitations of the Corporate Finance Obligation Rating Scale

Specific limitations relevant to the corporate finance obligation rating scale include:

• The ratings do not predict a specific percentage of default likelihood or expected loss over any given time period.
• The ratings do not opine on the market value of any issuer's securities or stock, or the likelihood that this value may change.
• The ratings do not opine on the liquidity of the issuer's securities or stock.
• The ratings do not opine on the suitability of an issuer as a counterparty to trade credit.
• The ratings do not opine on any quality related to an issuer's business, operational or financial profile other than the agency's opinion on its relative vulnerability to default and relative recovery should a default occur.

Recovery Ratings, in particular, reflect a fundamental analysis of the underlying relationship between financial claims on an entity or transaction and potential sources to meet those claims. The size of such sources and claims is subject to a wide variety of dynamic factors outside the agency's analysis which will influence actual recovery rates.

Ratings assigned by Fitch Ratings articulate an opinion on discrete and specific areas of risk. The above list is not exhaustive, and is provided for the reader's convenience. Readers are requested to review the section Understanding Credit Ratings — Limitations and Usagefor further information on the limitations of the agency's ratings.

Structured, Project & Public Finance Obligations — Long-Term Rating Scales

Ratings of structured finance, project finance and public finance obligations on the long-term scale, including the financial obligations of sovereigns, consider the obligations' relative vulnerability to default. These ratings are typically assigned to an individual security or tranche in a transaction and not to an issuer.

AAA: Highest credit quality.
'AAA' ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA: Very high credit quality.
'AA' ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A: High credit quality.
'A' ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB: Good credit quality.
'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB: Speculative.
'BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.

B: Highly speculative.
'B' ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC: Substantial credit risk.
Default is a real possibility.

CC: Very high levels of credit risk.
Default of some kind appears probable.

C: Exceptionally high levels of credit risk.
Default appears imminent or inevitable.

D: Default.
Indicates a default. Default generally is defined as one of the following:

• failure to make payment of principal and/or interest under the contractual terms of the rated obligation;
• the bankruptcy filings, administration, receivership, liquidation or other winding-up or cessation of the business of an issuer/obligor; or
• the distressed exchange of an obligation, where creditors were offered securities with diminished structural or economic terms compared with the existing obligation to avoid a probable payment default.

 

Structured Finance Defaults
"Imminent" default, categorized under 'C', typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

Additionally, in structured finance transactions, where analysis indicates that an instrument is irrevocably impaired such that it is not expected to pay interest and/or principal in full in accordance with the terms of the obligation's documentation during the life of the transaction, but where no payment default in accordance with the terms of the documentation is imminent, the obligation will typically be rated in the 'C' category.

Structured Finance Writedowns
Where an instrument has experienced an involuntary and, in the agency's opinion, irreversible "writedown" of principal (i.e. other than through amortization, and resulting in a loss to the investor), a credit rating of 'D' will be assigned to the instrument. Where the agency believes the "writedown" may prove to be temporary (and the loss may be "written up" again in future if and when performance improves), then a credit rating of 'C' will typically be assigned. Should the "writedown" then later be reversed, the credit rating will be raised to an appropriate level for that instrument. Should the "writedown" later be deemed as irreversible, the credit rating will be lowered to 'D'.

Notes:
In the case of structured and project finance, while the ratings do not address the loss severity given default of the rated liability, loss severity assumptions on the underlying assets are nonetheless typically included as part of the analysis. Loss severity assumptions are used to derive pool cash flows available to service the rated liability.

The suffix 'sf' denotes an issue that is a structured finance transaction. For an explanation of how Fitch determines structured finance ratings, please see our criteria available at www.fitchratings.com.

In the case of public finance, the ratings also do not address the loss given default of the rated liability, focusing instead on the vulnerability to default of the rated liability.

The modifiers "+" or "-" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the 'AAA' Long-Term Rating category, or categories below 'B'.

Enhanced Equipment Trust Certificates (EETCs) are corporate-structured hybrid debt securities that airlines typically use to finance aircraft equipment. Due to the hybrid characteristics of these bonds, Fitch's rating approach incorporates elements of both the structured finance and corporate rating methodologies. Although rated as asset-backed securities, unlike other structured finance ratings, EETC ratings involve a measure of recovery given default akin to ratings of financial obligations in corporate finance, as described above.

Limitations of the Structured, Project and Public Finance Obligation Rating Scale

Specific limitations relevant to the structured, project and public finance obligation rating scale include:

• The ratings do not predict a specific percentage of default likelihood over any given time period.
• The ratings do not opine on the market value of any issuer's securities or stock, or the likelihood that this value may change.
• The ratings do not opine on the liquidity of the issuer's securities or stock.
• The ratings do not opine on the possible loss severity on an obligation should an obligation default.
• The ratings do not opine on any quality related to a transaction's profile other than the agency's opinion on the relative vulnerability to default of each rated tranche or security.

Ratings assigned by Fitch Ratings articulate an opinion on discrete and specific areas of risk. The above list is not exhaustive, and is provided for the reader's convenience. Readers are requested to review the section Understanding Credit Ratings — Limitations and Usagefor further information on the limitations of the agency's ratings.

 

Short-Term Ratings

 

Short-Term Ratings Assigned to Obligations in Corporate, Public and Structured Finance

 

A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated entity or security stream and relates to the capacity to meet financial obligations in accordance with the documentation governing the relevant obligation. Short-Term Ratings are assigned to obligations whose initial maturity is viewed as "short term" based on market convention. Typically, this means up to 13 months for corporate, sovereign, and structured obligations, and up to 36 months for obligations in U.S. public finance markets.

F1: Highest short-term credit quality.
Indicates the strongest intrinsic capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

F2: Good short-term credit quality.
Good intrinsic capacity for timely payment of financial commitments.

F3: Fair short-term credit quality.
The intrinsic capacity for timely payment of financial commitments is adequate.

B: Speculative short-term credit quality.
Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term adverse changes in financial and economic conditions.

C: High short-term default risk.
Default is a real possibility.

RD: Restricted default.
Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Typically applicable to entity ratings only.

D: Default
Indicates a broad-based default event for an entity, or the default of a short-term obligation.

Limitations of the Short-Term Ratings Scale

Specific limitations relevant to the Short-Term Ratings scale include:

• The ratings do not predict a specific percentage of default likelihood over any given time period.
• The ratings do not opine on the market value of any issuer's securities or stock, or the likelihood that this value may change.
• The ratings do not opine on the liquidity of the issuer's securities or stock.
• The ratings do not opine on the possible loss severity on an obligation should an obligation default.
• The ratings do not opine on any quality related to an issuer or transaction's profile other than the agency's opinion on the relative vulnerability to default of the rated issuer or obligation.

Ratings assigned by Fitch Ratings articulate an opinion on discrete and specific areas of risk. The above list is not exhaustive, and is provided for the reader's convenience. Readers are requested to review the section Understanding Credit Ratings — Limitations and Usagefor further information on the limitations of the agency's ratings.

Relationship between Short-Term and Long-Term Ratings in Corporate and Public Finance

For the agency's corporate and public finance ratings, issuers may often carry both Long-Term and Short-Term Ratings. These may be assigned to the issuer, to its obligations, or to both. While there are a large number of discrete factors that drive Short-Term Ratings, a linkage has typically existed between Short-Term and Long-Term Ratings. In part, this reflects the inherent importance of liquidity and near-term concerns within the assessment of the longer-term credit profile. Additionally, it ensures that the two scales do not intuitively contradict each other for a given issuer. This linkage is outlined below, and in most circumstances displays a certain asymmetry, namely:

• a. higher relative short-term default risk implies an elevated risk of default in the near-term which cannot be separated from the long-term default assessment for most instruments and issuers; but
• b. lower relative short-term default risk, perhaps through factors that lend the issuer's profile temporary support, may coexist with higher medium- or longer-term default risk.

The Rating Correspondence Table thus represents a "common-sense" check on the combination of a particularly weak Short-Term Rating with a high Long-Term Rating. The other asymmetry – stronger Short-Term Rating but weaker Long-Term Rating – is addressed conceptually. The Short-Term Rating within investment grade is a measure of intrinsic or sustainable liquidity, which in most cases excludes the kind of temporary or unsustainable support described in point b. above.

In contrast, for speculative-grade ratings, greater emphasis is generally placed on the actual expected liquidity profile of the issuer over the 13 months that follow, including the impact of temporary improvement or declines in liquidity.

The table below is a guide only, and variations from this correspondence will occur, consistent with the criteria employed by individual rating groups, where analytically merited.

For more details, please consult: Short-Term Rating Criteria for Non-Financial Corporates and Rating U.S. Municipal Short-Term Debt.

Rating Correspondence Table

Long-Term Rating Short-Term Rating AAA F1+ AA+ F1+ AA F1+ AA- F1+ A+ F1 or F1+ A F1 A- F2 or F1 BBB+ F2 BBB F3 or F2 BBB- F3 BB+ B BB B BB- B B+ B B B B- B CCC C CC C C C RD/D RD/D
 

[Officiallytook]

Thanks yota...don't know what I'm going to read once this here is threw

Edited August 8, 2015 by Officiallytook

[MyLadiesDaddy]

Wow, Yota, I'm impressed.

 

 

Who Cares About Fitch's Rating - I Just Want To Know What Abercrombie Said ...

   

 

Shame on you,    this is a family site.

 

Abercrombie, is not wearing enough clothes to be here.

Edited August 8, 2015 by ladyGrace'sDaddy

[SnowGlobe7]

When is a revaluation of their credit rating? How often is this done?

[Officiallytook]

My thoughts exactly snowglobe

[easyrider]

When is a revaluation of their credit rating? How often is this done?

credit ratings deal with the issuance and confidence of bonds for investors.  Credit ratings change as the country progresses and sells bonds. This is a HUGE start for Iraq. This doesnt directly have an impact on the currency but then again one could say this is part of the monetary reform for Iraq to become compliant to go international.

Edited August 9, 2015 by easyrider

[SnowGlobe7]

Thanks easy...so is there a certain amount for them to sell and then their rating is automatically raised?

[DinarThug]

Thanks easy...so is there a certain amount for them to sell and then their rating is automatically raised?

They Arrange The Bond Through BondLady To Make Bail !

And Then They Have To Appear Before Judge Judy !

:D

[yota691]

Stable outlook for the economy and Iraq's sovereign rating - B

 

 

         

8/12/2015 0:00 

 BAGHDAD - A follow-Sabah 
said Fitch credit rating: the recovery of oil prices will contribute to improving the overall financial situation of Iraq unexpected at the same time a deficit slightly by 2017. year 
comes this at a time when the institution Iraq awarded first credit rating has sovereign versions of which is sought by the country before his intention to issue bonds international worth five billion dollars intended to alleviate the pressure drop in oil prices on the state budget. 
meet the lenders known credit rating GCR an acronym for (global credit rating) as a measure to assess the possibility of the borrower to meet its obligations in the face of the lenders or other words the risk of non-payment of lender (the source of the bond) to fulfill its obligations (loan value and benefits) of the borrower (bond) holder. And is rated the world's credit ladder classification consists of 4 degrees is A, B, C and D as well as variables that represent signal the + or - different Petkrarat. Economists believe that Iraq get the sovereign rating and the low is better than not having any degree rating because the lack of a degree classification means that the country is one of the non-existent investment areas even if high-risk. investment grade rating and Fitch chose B_ rating with a stable outlook for Iraq which is less than six degrees from investment grade AAA) or A +++) attributed it to political risk and poor security, which said it is one of the most serious risks faced by any sovereign entity has assigned a credit Fitch. According to experts Also, this category can be reconsidered after the stability of economic, security and financial situation of Iraq as well as being a possess qualifications that will raise the degree Ranked advanced degrees. Being the owner of the fifth-largest oil reserves in the world can be for Iraq to become an attractive investment for some investors. Oil contributes 40 percent of gross domestic product of Iraq and more than 90 percent of the public finance ongoing foreign transaction revenues. predicted Fitch also a deficit in dozens of public finance Iraq's box in 2015 because of falling oil prices and increased military spending and costs associated with efforts to fight al (Daash ) terrorist.production costs , according to Fitch Ratings said in a statement (low production costs. Most of the facilities and infrastructure for the production of oil infrastructure is far from unsafe areas on the inside). For his part, Secretary of the Finance Committee in the Iraqi Parliament Haitham al-Jubouri said that the rating low "does not meet the ambitions" but might be considered the start of the financial development point. He said al-Jubouri told Reuters: »It encourages us to start taking serious steps to reform the Iraqi banking sector and send a strong message to investors and improve our own future economic and financial outlook.»

[gregp]

Yota, you're on fire!

[MyLadiesDaddy]

Translation, keep doing what you're doing and will change it soon.