An economist warns of the repercussions of Iraq’s “B-” credit rating.
An economist warns of the repercussions of Iraq’s “B-” credit rating.
10-15-2025
Al-Maalouma/Baghdad..
Economic analyst Basem Attonan warned on Wednesday of the negative repercussions of Standard & Poor’s affirming Iraq’s credit rating at “B-“, noting that this rating places Iraq among slow-growing economies.
Attonan told Al-Maalouma News Agency that “Iraq’s B- rating reflects the presence of about 20 weaknesses in the investment environment, most notably the absence of political stability and economic diversification,” indicating that “this rating increases the cost of borrowing and reduces Iraq’s attractiveness to international investors.”
He added that “the current government, as well as the next one, is required to develop a comprehensive strategic plan to improve the credit rating by enhancing security and political stability, developing the economic infrastructure, and providing real guarantees to foreign investors.”
Attonan continued, “Continuing with this rating may lead to a decline in international confidence in the Iraqi economy and limit the country’s ability to implement major development projects, especially in light of the financial challenges facing the general budget.”
It is noteworthy that Standard & Poor’s has affirmed Iraq’s rating at “B-/B” with a stable outlook, indicating that the continuation of this rating is linked to Iraq’s ability to maintain its foreign exchange reserves and meet its debt service obligations, despite the ongoing political uncertainty.
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