URGENT: A Sharp Upward Reversal In The Financial Sector In Iraq.

[yota691]

 

An international classification indicates the slow economic diversification in Iraq and the biggest challenge it faces

 

•  

 2021-07-07 02:33

 

Shafaq News/ Moody's Financial Rating Agency confirmed its credit rating for Iraq at Caa1 with a stable future outlook.

Moody's stated that the confirmation of the rating reflects the credit challenges posed by Iraq's exceptionally large economic and financial dependence on oil.

Moody's stated that the stable outlook for Iraq balances a number of potential positive and negative drivers.

She added that progress in economic diversification is still slow and hampered by the weak business environment and investment climate in Iraq.

She considered corruption to be the biggest institutional challenge facing Iraq.

Moody's said that Iraq's political landscape and growing political stability risks threaten to further slow progress on institutional and economic reforms.

[yota691]

An international classification indicates the slow economic diversification in Iraq and the biggest challenge it faces

 

money and business Economy News _ Baghdad  Moody's rating agency affirmed Iraq's credit rating at Caa1 with a stable outlook. Moody's stated that the confirmation of the rating reflects the credit challenges posed by Iraq's exceptionally large economic and financial dependence on oil. Moody's stated that the stable outlook for Iraq balances a number of potential positive and negative drivers. She added that progress in economic diversification is still slow and hampered by the weak business environment and investment climate in Iraq. She considered corruption to be the biggest institutional challenge facing Iraq. Moody's said that Iraq's political landscape and growing political stability risks threaten to further slow progress on institutional and economic reforms.

Views 55   Date Added 07/07/2021

[Luigi1]

BAGHDAD TODAY:

Moody’s International expects a sharp upward reversal in the financial sector in Iraq – urgent

Today, Thursday, Moody’s International Agency expected a sharp upward reversal in the Iraqi financial sector during the current year 2021.

 

Moody’s Investors Service confirmed Iraq’s rating with a grade of ( Caa1 ), any country that has good bonds of stability, but involves credit risks for non-payment), and maintained its stable future outlook for the country .

The agency said, in a statement published by “the international” and translated (Baghdad today): “The confirmation of the rating reflects the credit challenges posed by Iraq’s economic and financial dependence, which is heavily dependent on oil, the restriction of the government’s ability to respond to external and domestic shocks, and the low competitiveness of the Iraqi economy.” .

[Laid Back]

(Caa1):Rated as poor quality and very high credit risk.

 

No a good rating in the eyes of investors.

 

 

[Luigi1]

8 minutes ago, Laid Back said:

(Caa1):Rated as poor quality and very high credit risk.

 

No a good rating in the eyes of investors.

 

 

 

True.  It's a start.  Rating will improve as conditions in Iraq warrants it.

Just curious what the US credit rating is considering all the borrowing, spending & debts?

[Half Crazy Runner]

14 minutes ago, Luigi1 said:

Just curious what the US credit rating is considering all the borrowing, spending & debts?

Oddly enough, Moody’s rating for the US is Aaa (if the info I just looked up is up to date..) 

[Longtimelurker]

36 minutes ago, Laid Back said:

(Caa1):Rated as poor quality and very high credit risk.

 

No a good rating in the eyes of investors.

 

 

Caa1 is the current rating before the sharp upward reversal expected this year. What will Iraq do this year to get a sharp upward reversal?????

 

RV TIME!!!

[Longtimelurker]

5 minutes ago, Longtimelurker said:

Caa1 is the current rating before the sharp upward reversal expected this year. What will Iraq do this year to get a sharp upward reversal?????

 

RV TIME!!!

If I'm reading it correctly.. could read either way..

[Half Crazy Runner]

2 hours ago, Longtimelurker said:

RV TIME!!!

[Theseus]

3 hours ago, Luigi1 said:

 

True.  It's a start.  Rating will improve as conditions in Iraq warrants it.

Just curious what the US credit rating is considering all the borrowing, spending & debts?

How many starts do you want? 

 

 

A factor in this might be the fact that Iraq misreported to the IMF their stats for the 2016 SBA and the IMF is not too happy about it. They are seeking corrective measures. 

 

 

Agency	Rating	Outlook	Date
Fitch	B-	Stable	3/2021
Moody's	Caa1	Stable	7/2019
Fitch	B-	Stable	7/2019
Moody's	Caa1	Stable	1/2019
Fitch	B-	Stable	7/2018
Fitch	B-	Stable	12/2017
Moody's	Caa1	Stable	8/2017
Fitch	B-	Stable	3/2017
Fitch	B-	Negative	9/2016
Fitch	B-	Negative	7/2016
Fitch	B-	Negative	3/2016
Standard & Poor's	B-	Stable	9/2015

Edited July 8, 2021 by Theseus

[dinarham]

  It's possible that things will pop after the G20 summit at the end of October . The G20 Summit will be the "voice of God " in regard  to the  future of international trade at this point in time. G7 also discussed the parameters of international trade ,but G20 will button it down . 

[SocalDinar]

$70 Oil Isn’t Enough To Stabilize Iraq Right Now: Moody’s

By Charles Kennedy - Jul 08, 2021, 3:30 PM CDTIraq’s economy will strengthen this year as a result of higher oil prices but this will not be enough to stabilize it over the long term, according to Moody’s.

The ratings agency affirmed Iraq’s stable outlook along with its long-term non-investment grade rating citing the country’s continued over-reliance on oil revenues.

“The rating affirmation reflects credit challenges posed by Iraq's exceptionally high economic and fiscal reliance on oil, and very weak institutions and governance that … will continue to limit policy effectiveness, constrain the government's capacity to respond to external and domestic shocks and weigh on the already low competitiveness of Iraq's economy,” Moody’s said as quoted by The National.

 

Iraq is OPEC’s second-largest oil producer but years of war with Islamic State have left it even more vulnerable to oil price swings than its fellow OPEC members. To date, the country relies on oil for as much as 90 percent of its budget spending.

It was because of this excessive dependence on oil revenues that Iraq struggled to meet its production quota under the OPEC+ production control agreements from the past couple of years. Iraq’s non-compliance proved so blatant that at one point Saudi Arabia threatened its neighbour to open its own taps to punish it for pumping too much.

Lately, however, Iraq has been careful with its quota. The latest figures from state-owned SOMO confirm it as the company reported a decline in oil output from May to June and also a slight decline in exports.

Meanwhile, in a fresh blow to the already troubled state, Oil Minister Ihsan Abdul Jabbar said last week Russia’s Lukoil had formally notified the government it planned to exit the West Qurna-2 field and that BP, too, was thinking about leaving Iraq. The minister cited the unfavourable investment climate as reason for the companies’ plans.

By Charles Kennedy for Oilprice.com

https://oilprice.com/Latest-Energy-News/World-News/70-Oil-Isnt-Enough-To-Stabilize-Iraq-Right-Now-Moodys.html