Fitch maintains Iraq’s rating with a stable outlook


Fitch Ratings said it kept its rating of Iraq unchanged with a stable outlook.
Fitch said in a statement Thursday it had confirmed its long-term foreign currency default risk rating at B-.
Three months ago, Standard & Poor’s confirmed its credit rating for Iraq at B- / B with a stable outlook, but expected oil production cuts to affect economic growth in 2017.
Fitch expected Iraq’s oil production and exports to stabilize at high levels next year 2018.
Iraq, OPEC’s second-largest oil exporter, agreed last weekend to extend an oil production cut to the end of 2018 to restore the balance between supply and demand and thereby improve oil prices.
Iraq relies on revenues from the sale of oil to finance up to 95 percent of state expenditure.
The fall in crude prices since 2014 has had a major impact on the Iraqi economy.
Fitch said Baghdad’s implementation of an agreement with the International Monetary Fund (IMF) on a three-year demand loan was running slower than planned.
In May 2016, Iraq agreed with the International Monetary Fund (IMF) to lend it $ 5.4 billion in an agreement that could then lead to additional $ 15 billion in international aid in the next three years.

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