Iraq's Credit Score by Moody Remains Caa IMF Report

 The Moody's credit rating agency maintained Iraq's rating at "Caa" with a stable outlook.

The rating reflects Iraq's current financial situation, given its dependency on hydrocarbons, which makes the country highly vulnerable to fluctuations in oil prices.

Iraq would also be affected fundamentally by the escalation of the Gaza conflict and the intervention of other parties.

Earlier this month, the International Monetary Fund (IMF) released a dire assessment of the Iraqi economy due to factors such as reduced oil production, changes in currency exchange rates, and disruptions in oil flows via the Iraq-Turkey pipeline.

According to the IMF, the Iraqi economy has slowed in recent months after oil production recovered last year after the Corona outbreak.

OPEC+'s decision to reduce oil production and the halt of oil flows from northern Iraq to the Turkish port of Ceyhan are expected to reduce oil production by five percent in 2023, according to the IMF.

A review of the Iraqi economy was conducted at the time by experts at the IMF.

Along with Standard & Poor's and Fitch Group, Moody's is one of the three major credit rating agencies.

To rate debtors' creditworthiness, the firm uses a standardized rating system that measures potential investor loss in the event of default.