Shafaq News – Baghdad

On Wednesday, Prime Minister Mohammed Shia al-Sudani directed the formation of a joint national team to work on raising Iraq’s sovereign credit rating.

In a statement, al-Sudani's office explained that the body will be chaired by the Central Bank of Iraq (CBI) Governor and include representatives from various ministries, along with the Prime Minister’s office and financial institutions. Its mandate is to prepare a strategy with measurable targets, submit regular reports, and coordinate directly with global rating agencies Fitch, S&P, and Moody’s.

The initiative, according to the statement, is part of the government's broader reform program, focusing on stronger governance, better risk management, and a more competitive business climate.

At present, Iraq is rated B- by both Fitch and S&P and Caa1 by Moody’s — among the lowest in the region. While all three agencies assign a stable outlook, they highlight Iraq’s heavy dependence on oil revenues, political risk, and weak institutions as limiting factors.

Credit analysts note that the country’s sizable foreign reserves and fiscal reforms have prevented further downgrades. Fitch Solutions forecasts GDP growth of 1.9% in 2025 but warns that fiscal and external imbalances could constrain improvements in creditworthiness.