Iraq Ratings Affirmed At 'B-/B'; Outlook Stable
Overview
Iraq passed an expansionary three-year budget program in 2023, which will likely lead to rising general government debt.
The country has a history of under-spending on budgetary targets but heightened regional tensions alongside parliamentary elections in late 2025 will pressure fiscal finances.
Despite OPEC+ production cuts continuing into at least the first half of 2025, we expect Iraq's sizable oil export volumes will support external surpluses and foreign exchange reserves remaining in excess of $100 billion over 2025-2028.
We therefore affirmed our 'B-/B' ratings on Iraq. The outlook is stable. link