By John Lee.
Moody's Investors Service has affirmed the Government of Iraq's long-term issuer and senior unsecured ratings at Caa1 and maintained the stable outlook.
The decision to affirm Iraq's Caa1 ratings reflects credit challenges posed by very weak institutions and governance that in Moody's view, will continue to limit policy effectiveness, constrain the government's capacity to respond to external and domestic shocks and weigh on the -- currently very weak - competitiveness of Iraq's economy.
The Caa1 rating level also captures Iraq's inherently very high level of political risk, in part related to political strife which will slow reform progress, hamper a strengthening of institutions and contribute to maintaining very high fiscal, external and economic vulnerability to potential declines in oil prices.
(Source: Moody's Investors Service)
(Picture: Bonds, from Alexskopje/Shutterstock)