A stable outlook for Iraqi international bonds

31/8/2017 12:00 am

Baghdad / Mustafa Al Hashemi Fitch and Standard & Poor’s have agreed to raise the credit rating of Iraq to B with a stable outlook that strengthens the country’s financial position in the global bond market. To a stable outlook, and Standard & Poor’s recently granted Iraq a stable outlook. In 2017, Iraq issued two successive international sovereign debt instruments, which are linked to the international capital market. The first is the (Tigris) bond at a rate of 2.149 percent with a value of US $ 1 million issued by the US government. The second sovereign bond issued by the Iraqi government and its credit rating – B and carries interest at about 6.75 percent, which is lower than the Iraqi international bond traded in the secondary secondary markets since 2006.

According to the academic economist d. The credit ratingagency Standard & Poor’s has given Iraq a stable outlook, indicating that the agency has confirmed its credit rating for Iraq at B- / B with a stable outlook. At the same time, it is expected that the impact of oil production cuts on Iraq’s economic growth in 2017 .
He Mahouelle “morning”: the agency attributed the reason for granting a stable look to Iraq, to the expectations of continued efforts to control expenditures in the next few years, stressing that the classification receives support from the Iraqi oil production is concentrated in the areas under the firm control of the federal government.
According to a statement by the Fitch Foundation, it identified the bonds issued by Iraq at the valuation of B, explaining that this assessment is consistent with the long-term credit rating of the country’s foreign currency.
“The rating of bonds will be sensitive to long-term foreign currency changes, which is why the institution has long ago revised its rating from negative to a stable outlook.”
The prime minister’s finance adviser, Mohammed Saleh, said earlier that Iraq had issued the foreign sovereign bond (Euphrates) in the international capital market, which is payable after five years and a 6.75 percent interest paidevery six months.



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