Credit rating
Credit rating
08/25/2025
As part of its relentless efforts to strengthen Iraq’s economic and financial position on the international map, the government of Prime Minister Mohammed Shia al-Sudani continues to implement an ambitious reform program for the financial and banking sector. This program aims to advance the national economy by stimulating global investment and attracting it to the Iraqi market. This is part of a comprehensive vision that prioritizes financial stability and diversification of sources of income.
The latest step in this reform vision is the formation of a “Joint National Team” headed by the Governor of the Central Bank of Iraq, with high-level representatives from the Ministries of Finance, Oil, and Planning, along with specialized economic and financial institutions, the Prime Minister’s Office, the Securities Commission, and representatives from the banking sector. This team’s primary mission is to coordinate directly with leading international credit rating agencies (Moody’s, S&P, and Fitch) to improve Iraq’s sovereign credit rating.
Improving credit ratings is a strategic tool for opening broader horizons for direct and indirect foreign investment. The Securities Commission’s representation on this team will support the attraction of regional and international companies (production and service) to establish investment partnerships with the Iraqi private sector, or to participate in financial markets by investing in Iraqi stocks.
This initiative also builds on previous reform efforts, most notably the Central Bank of Iraq’s contract with global firm Oliver Wyman to prepare a banking reform document for private banks. This document has reached advanced stages of implementation after completing the necessary reviews.
In a related context, Rafidain Bank is entering into a partnership with K2 International to develop its performance and enhance the efficiency of its international banking and credit operations.
These comprehensive steps reflect the government’s serious commitment to strengthening financial institutions’ governance and risk management, and developing the business environment, in line with economic reform plans. They also underscore its commitment to adopting a comprehensive national strategy to improve credit ratings, thereby enhancing international confidence in the Iraqi economy.
To ensure the success of these efforts, it is recommended to study successful regional and international experiences in this field and draw on lessons learned. However, achieving the desired progress depends on addressing structural challenges, foremost among which are combating corruption and bureaucracy, and creating a transparent legal and banking environment that protects the rights of all stakeholders, including banks, investors, and individuals.
In short, these reforms represent a glimmer of hope for putting Iraq on a path to sustainable financial development, but their success will depend on tangible results and the ability to pass the test of true economic transformation.
alsabaah.iq
