Moody's on Aug. 3 assigned a Caa1 long-term issuer rating to the government of Iraq, with a stable outlook. It also assigned a (P)Caa1 senior unsecured rating to the country's bond issuance.
The rating agency assigned B3 long-term local- and foreign-currency bond ceilings and Caa2 long-term local- and foreign-currency deposit ceilings.
The action reflected the agency's view that the country experiences volatile economic growth dependent on oil, low institutional strength due to weak governance and a high debt burden with an overwhelming dependence on oil revenues.
The country also faces a very high susceptibility to event risk, with political risks among the highest of any country rated by Moody's.