By John Lee.
Iraq's (Caa1 stable) credit challenges include very weak institutions and governance that limit policy effectiveness, constrain the government's capacity to respond to external and domestic shocks and weigh on economic competitiveness, Moody's Investors Service said in a report this week.
It says last year's improvement in the fiscal and external balances was almost entirely due to higher oil prices without any structural improvement that would reduce the impact of future possible falls in oil prices. Iraq also faces very high levels of political event risk.
(Source: Moody’s Investors Service)
(Picture: Bonds, from Alexskopje/Shutterstock)