We expect Iraq will be in a fiscal deficit in 2019 and coming years, due to lower oil prices and large spending needs. That said, we foresee growth rebounding in 2019, after two years of decline, because of expected increases in oil production and a gradual pick-up in nonoil economic activity. We are therefore affirming our 'B-/B' sovereign credit ratings on Iraq. The outlook is stable. On Aug. 23, 2019, S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Iraq. The outlook is stable. The stable outlook reflects our opinion that risks from Iraq's expansionary fiscal position will be contained, to some extent, given that spending is limited by the government's
