Low oil prices and production cuts related to the OPEC+ agreement will more than triple Iraq's fiscal deficit in 2020 compared with 2019 and push the current account balance into a double-digit deficit. We expect the government's domestic financing needs to be largely met, albeit indirectly, by the central bank, storing up future inflationary pressure. The government's external financing needs will be met by using reserves and possible bi- and multi-lateral assistance. We are therefore affirming our 'B-/B' sovereign credit ratings on Iraq. The outlook remains stable. On Aug. 21, 2020, 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 view
