Fitch reaffirms Iraq’s sovereign credit rating at B- with stable outlook
Agency cites financial resilience, security gains, and steady oil revenues
BAGHDAD, Iraq (MNTV) — International ratings agency Fitch Ratings has reaffirmed Iraq’s sovereign credit rating at B- with a stable outlook, signaling continued confidence in the country’s financial position despite regional and global pressures, the Ministry of Finance said.
In its latest assessment, Fitch highlighted the resilience of Iraq’s domestic financial environment, noting that recent economic performance has remained steady even amid wider geopolitical uncertainty.
The agency pointed to government measures that have helped shield the economy from regional conflicts and external shocks.
Fitch’s report also noted that internal conditions in Iraq have remained broadly stable in recent months, with improvements in governance and policy coordination contributing to economic continuity.
According to the assessment, these factors have reduced the immediate risks posed by surrounding regional tensions.
The ratings agency further emphasized improvements in the security situation, describing them as a positive factor that has strengthened Iraq’s capacity to manage external pressures and maintain basic economic stability.
Enhanced security conditions were seen as supporting investor confidence and overall economic activity.
Oil revenues were identified as a central pillar of Iraq’s public finances, providing a dependable source of income to support government spending and the delivery of essential services.
Fitch noted that energy exports continue to underpin fiscal stability, even as the country works to address longer-term economic vulnerabilities.
Responding to the rating decision, the Ministry of Finance said the stable outlook reinforces the importance of continuing structural reforms, particularly those aimed at expanding non-oil revenue sources, improving public expenditure efficiency, and limiting uncertainty related to future budget processes.
The ministry also reaffirmed its commitment to economic diversification and fiscal reform, stressing that sustained political and security stability remains critical for strengthening confidence among international financial institutions and credit agencies.
The reaffirmation of Iraq’s rating reflects cautious optimism about the country’s economic trajectory, while underscoring the need for continued reform to reduce dependence on oil and enhance long-term financial sustainability.
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