Exclusive - Iraq seeks credit rating before jumbo bond issue

mochasmom wrote:But, they would still need an internationally recognized currency before they get a credit rating, right?

duck2000 wrote:four more months to credit rating!

mochasmom wrote:But, they would still need an internationally recognized currency before they get a credit rating, right?

duck2000 wrote:5/3/2015 0:00 

Declared one of the institutions after four months of receiving a government request 
BAGHDAD Mustafa al-Hashemi 

strengthens the presence of the credit rating of any country in the world to get the funding they want through local or foreign markets, as well as he (credit rating) reduces the cost of borrowing when the state needed to decode the financial Achtnaqatha external debt. 

and demonstrated the need for Iraq to speed up winning this category of the three global agencies after Tdharrh of lower world oil prices and their impact on the general budget. 

In this regard, Prime Minister Dr. economic adviser said. The appearance of Mohammed Saleh: that Iraq lacks the sovereign credit rating but bonds issued by to extinguish the Paris Club debt rated close to those countries that have such a rating awarded Iraq. 

He said in a statement the "morning" that interest rates and the discount rate on the Iraqi raised bonds earlier approaching the price of some countries that have rated sovereign, pointing out that the classification of Iraq's credit, although he did not officially yet determined, Vhually probably at a temperature -B returned him well and cause an indication of optimism, saying: that this place is an official but set the intensity on buying Iraqi bonds raised by accordance with the Paris Club and sold in global markets, amounting to $ 2.7 billion annual steady at 5.8 percent interest. 

He stressed that the existence of a sovereign credit rating on the bonds, whatever the degree reduces the interest rate and the discount in the event was put support without credit rating will be a degree of risk high It would therefore be the discount rate the highest. 

The credit rating agencies of the three, the Standard & Poor's, and Moody's and Fitch, in general risks related to the issuance of debt securities, whether companies or governments to assess and prepare the source's ability to meet the payment of debt interest and premiums resulting from the most important indicator of creditworthiness built by ratings by these agencies. 

He predicted Saleh, said that [size=33]the credit rating of the Iraq issue within four months[/size] of naming one of the agencies and ask them period officially do the job by the government.

He was Finance Minister Hoshyar Zebari said that Iraq was seeking sovereign rating and communicates with rating agencies credit with the ministry is preparing to issue bonds worth five billion dollars needed to cover the budget deficit of 25 percent of the size of the 2015 budget, amounting to about $ 100 billion. 

According to Zebari told Reuters: "We started the process.Banks also seek to help us in this direction. "Did Zebari disclose the date on which it is expected to complete the process. 

Iraq had announced his intention to issue bonds worth five billion dollars in the first issued in the international bond market nine years ago and is in dire need of liquidity, Observers believe that the Iraq's oil reserves and huge enjoys a good reputation among countries in the payment of its debts and the implementation of financial obligations able to attract buyers for these bonds. 

According to Reuters, the Iraq issue in place of the dollar bonds maturing in 2028 and prompted a wave of selling panicked late last year with the erosion of oil prices, the yield on these bonds to rise to a record high of 10.49 percent from about 7.2 percent in September. But the yield has since tumbled to 8.04 percent. 

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Proven wrote:

duck2000 wrote:four more months to credit rating!

Are you implying that these bonds will get a better interest rate because the currency will be internationally recognized within 4 mont