"Fitch" rating modulate the Iraqi economy from "stable to negative" and expects his recovery in 2017

Announced an international institution credit rating, modified classification of the Iraqi economy from "stable to negative", while attributed to the decline in oil prices and poor political and security situationand tensions "ethnic and sectarian," predicted improvement in the situation in Iraq more during 2017.

Fitch said the International Foundation for Credit Rating in its report, it proclaimed, and I followed (range Press), " the classification of the Iraqi economy rate was amended from stable to negative, to one degree (B-) of the deterioration of oil prices, increasing the deficit in the gross domestic product GDP from 8.2 percent in 2015 , the last, to 15 percent during the year , the current 2016, in line with expectations, "likely the possibility of improving the Iraqi economy more during the next year 2017 deficit to fall to 7.6 percent of the total gross domestic product."

The foundation says, that " the rating was based on key indicators including the decline in oil prices , which led to the deterioration the financial situation of Iraq, which relies more than 90 percent of its economy on oil imports, which constitutes 50 percent of GDP , "indicating that" the inability of the Iraqi economy hasincreased as a result to 8.2 percent during the year 2016 ".
She explained Fitch," the predicted survival Brent crude rates during the current 2016, at $ 35 a barrel, would increase the deficit Iraqi economy growth rate to 15 percent during the current year compared to the past in 2015 , "pointing out that" other indicators that were adopted in the classification, terms of bad situation political and security ". According to the institution, that "Iraq has made ​​some progress against Daash, but the threat of regulation is expected to continue during the current 2016 at least," he continued that "ethnic and sectarian tensions have led the other to the political instability in Iraq."

He predicted Fitch, too "weak growth investment in Iraq during the current 2016 because of lower oil prices ,with the government 's inability to repay the amounts spent by international companies in their projects within the country, " the follow - up to the" indicators that are expected to lead to improved economic situation more during the next year in 2017, is the possibility of the high price of Brent crude of $ 35 a barrel during thecurrent 2016, to $ 45, predicted the survival of export rates at three million and 300 thousand barrels per day, for the years 2016-2017, as well as the recovery of non - oil sectors , which will coincide with theimprovement expected the security situation. "

the Fitch international institution credit rating, Fitch Ratings, is a wholly owned subsidiary of Hearst Corporation, one of the three rating majors along with Standard & Poor 's and Moody 's , the company wasfounded by John Knowles Fitch, in (24 December 1913), in New York city as the Fitch 's publishing company, and merged with IBCA Limited, based in London in December 1997.
the credit rating agencies are independent private companies, evaluates the creditworthiness of bond issuers from countries or companies, that is the extent of the company 's ability or the state to repay debt or theability to invest in, and reflected the classification issued by positively or negatively, on investors ' confidence in the state or the company concerned.
dependent credit rating institutions on several - based economy standards, legislation and impacts ofgeopolitical and corporate governance, corporate governance and competitiveness in its credit ratinginstitutions / countries, Kalrlakeh, assets and financial flows that show in the end the current financial situation resulting in the expected outlook for the institution or the state.
the back control of those three companies, the decision by the US Securities Commission in 1975 as accredited by them companies, as many of the financial institutions and insurance companies do not invest only in high - rated bonds, the easiest way by exporters bonds to prove their creditworthiness is receive credit from a company or two of these three companies classified into these three companies is like institutions monopolized credit rating around the world.

The use of rating agencies symbols to describe the merit credit starts from AAA as the highest credit rating(mean safer), down at least to the rankings merit through the letters AA, A and BBB , and so on , right down to D (mean stuttering), while the mean halving (B-) , which gave Iraq (risk).