Agency US: Iraqi investment bonds “weak”
Agency US: Iraqi investment bonds “weak”
06/09/2015 (00:01 pm)
BAGHDAD / long-Presse
Classified agency Standard & Poor’s US financial services and credit rating, the Iraqi Finance bond strength rank B- weak, as shown that this category because of the vulnerability of Iraq’s security and institutional risks impressive on the strength of its economy, confirmed the possibility of recovery of the Iraqi economy, supported by oil precautions.
It said the US Agency for credit rating by the New York-based In a statement, I followed the (long-Presse), “The agency classified the Iraqi Finance bond strength rank B- any vulnerable to exposure Iraq to the risk of security and institutional, one of the factors affecting the strength of the economy in the country.” .
The statement added that “B- rating means the weakness of investment bonds of hard currency and the country’s vulnerability to economic environment critical oscillatory circuit with the continuation of the war with al Daash accompanied by a sharp drop in oil that make up the whole of the dangers threatening the prices investors.” The agency indicated that “overall economic activity in Iraq, which received a stable outlook from rating agency Standard & Poor’s US, is expected to see a rise by 0.3% this year before making the most of up to 5% over the next three years, supported by the oil reserves huge for the country.
“She explained the US Agency that” this bright economic outlook is based on developments in the oil production increases, which it is estimated that it will reach a rate of 5 million barrels per day during 2018, compared to the total production rates of last year, amounting to 3.1 million barrels per day. ” .
US financial institution and pointed out that “Indicators rating for Iraq constrained by the war that the country is waging against al Daash, as well as political institutions that live initial stages of its development, as well as sectarian divisions between Shiite, Sunni and Kurdish ethnic groups.”
American Foundation noted that “This category comes in conjunction with the development of the country officials for economic plans for the reception expected to attend in the first bond sale process since investors in 2006 at a time when the government is trying to balance and strengthen its financial resources.
“known credit rating, GCR an acronym for (global credit rating) as a measure of the Tkadiramkanah the borrower on to fulfill their obligations in the face of the lenders or other words Mkhatraadm repay the lender (issuer) to meet its obligations (loan value and benefits) of the borrower (bond holder). And is rated the world’s credit rating ladder consists of four grades are A, B, C and D as well as variables that represent signal the + or – different Petkrarat. The credit rating agencies three ,standrd ,o & Poor’s, Moody’s, Fitch in general risks associated with versions of religion, whether for companies or governments assessment. The source’s ability to meet payment of the benefits of religion and premiums resulting from the most important indicator of creditworthiness upon which to build classifications by these agencies.
It is said that Iraq’s version in place of dollar bonds maturing in 2028 and prompted a wave of selling panicked late last year with the erosion of oil prices return on these bonds to rise to a record high at 10.49% from about 7.2% in September, but the yield has since tumbled to 8.04%.
announced Finance Minister Hoshyar Zebari in (a May 2015), that Iraq sought to obtain the sovereign rating and communicate with the credit rating agencies, indicating that it is preparing to issue huge bonds worth five billion dollars to cover the fiscal deficit. Zebari said in a press statement that “Iraq is seeking sovereign rating and continue with the credit rating agencies,” explaining that “seeks to connect with two or three credit rating agencies.”
He called Economists in a former government economic agencies time to the need to speed up the resolution of the subject classification credit to Iraq because of its great importance in attracting foreign investment and give the right economic perceptions to the investing companies as well as being one of the most important factors in the reform of the banking sector.
According to economist d. The appearance of Mohammed Saleh, the rating Iraq credit now at a temperature of B- is a good sign and reason for optimism, noting that he could be the country classification of credit through bonds sold in international markets, because the presence of a credit rating, though low, is better than no rating basis.