...Region Trade Bank for Investment and Finance Private Shareholding's (RTB) Issuer Default Ratings (IDRs) are driven by its standalone strength, as indicated by its Viability Rating (VR). The VR reflects the weak operating environment, as well as its business profile and profitability being challenged by the Central Bank of Iraq's (CBI) cancellation of the foreign-currency (FC) auction window. The VR also reflects RTB's high sovereign exposure, and high capital and liquidity ratios. The bank's `ccc+' VR is below the `b-' implied VR due to its business profile. Weak Operating Environment: Iraq is highly dependent on the cyclical oil sector, and has significant state involvement in growth, weak governance and regulatory frameworks, and a fragile business environment. Its undeveloped banking sector is exposed to high compliance and foreign-currency (FC) risks. Fitch forecasts Iraq's real GDP growth will rise to 5.3% in 2025 (2024: -2%), but will remain sensitive to oil revenue and government...
