The financial strength of the country to qualify for a credit rating

by day dreamer Sat 19 Jul 2014, 8:32 pm

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The financial strength of the country to qualify for a credit rating

by day dreamer Sat 19 Jul 2014, 8:32 pm

The financial strength of the country to qualify for a credit rating

7/20/2014 0:00

BAGHDAD - Mustafa al-Hashemi
Represents the acquisition of a high degree of credit rating of any country in the world's major economic importance in determining future scenarios for the economy and that comes through increasing the volume of foreign investments, given their importance in the economic advancement of the country at all levels.
In this regard, the researcher confirmed the economic Suhad virgins that there is a close relationship between the economic stability of Iraq and give him a sovereign credit rating.
She Athari told (morning): The country to obtain a credit rating from international rating agency gives the three future economic indicators reflect the true reality of the investment and business environment in Iraq, which enhances the advent of foreign investment in order to achieve development opportunities. Known credit rating GCR, an acronym for (global credit rating) as a measure to assess the possibility of the borrower to meet its obligations in the face of lenders, or in other words, the risk of non-payment of the lender (the source of the bond) to fulfill its obligations (the value of the loan and its benefits) to the borrower (the bondholder) . And is rated the world's credit rating ladder consists of 4 grades are A, B, and C and D as well as variables that represent signal + or - and Petkrarat different. The credit rating agencies of the three, the Standard & Poor's, Moody's and Fitch overall assessment of the risks associated with both versions of the debt of companies or governments. The ability of the source to meet the payment of debt interest and premiums incurred by him the most important indicator of creditworthiness upon which to build classifications by these agencies.
And stressed the importance of clarity and stability of policies and the government's plans to deal rating agencies and the international calendar with Iraq, as well as to maintain the stability of the currency and a commitment to international conventions.
She pointed to the possibility of getting through the classification of the contract, one of the economic ministries such as trade or financial planning, or with one of the three agencies for the recent turn to conduct a field survey of the general situation and the financial result in the adoption of the degree classification.
Experts believe that the stability of the general situation in Iraq great importance in enhancing the credibility of the reports issued by the rating agencies on the degree of risk and determine the outlook stable future for the country's economy, as long as there is a state of unawareness and lack of visibility of economic decision-makers, it reduces the need to intensifying efforts to get a credit rating.
She drew virgins that Iraq possesses the power of a very big financial qualify to integrate global system coupled with a financial liquidity and high oil wealth, which would raise the grade credit rating for Iraq, in order to develop the economic reality for stability to attract investment and give the perceptions of the economic right to the companies invested.
And called for the application of the policies needed to improve the degree classification to become within the investment grade, which contributes to increase the resources of the state so as to enable the country to attract investors and access to global capital markets and access to appropriate funding cost.
The responsibility for applying the credit rating of Iraq - according to experts - the responsibility of the Central Bank of Iraq, and Iraq had in the seventies and eighties of the last century credit rating high, but no one dares to disclose that degree at that time as being contrary to the laws and regulations of the former regime. Lies necessity government action to raise this level to a degree better because it will contribute to attract investment and gives extra confidence to investors.
The credit rating is through the public debt and the issuance of treasury transfers or government bonds, particularly in international markets, or those bonds that are sold outside of Iraq, as well as the proportion of the total assets of sovereign-to-GDP and credit risk, and domestic and foreign investment and other economic indicators other

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