Iraq has yet to form a government following the October 2021 parliamentary elections, raising risks of further political destabilization and limiting reform momentum. High oil prices and rising production will support twin fiscal and external surpluses in 2022 and 2023, increasing Iraq's already-strong foreign exchange reserve position. We therefore affirmed our 'B-/B' ratings on Iraq. The outlook is stable. On Aug. 19, 2022, 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 that Iraq's foreign exchange reserves will continue to comfortably exceed debt-servicing obligations over the next 12 months, largely offsetting risks from political uncertainty, the country's weak institutional framework,
