Moody's sets Iraqi bond rating at cca1 with a stable outlook

Economy News Baghdad:

Moody's has rated the rating of Iraqi government bonds at cca1 with a stable outlook.

"The Iraqi economy is large and has a very large oil wealth, but it is suffering from very volatile growth due to its lack of economic diversification," Moody's said.

"The institutional strength of the country is very low, as evidenced by weak governance and transparency indicators," Moody's said.

The agency predicted that "the debt burden will stabilize at 60% of GDP, but with a huge dependence on oil revenues."

Moody's said, "Developments in the oil industry and its main effects have caused a sharp slowdown in growth in 2017, while expected a contraction of 0.4% in the growth of the economy."

According to the agency, "is likely to slow the growth of the Iraqi economy now until 2022."


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