Iraq passed an expansionary three-year budget program in 2023, which will likely lead to rising general government debt. The country has a history of under-spending on budgetary targets but heightened regional tensions alongside parliamentary elections in late 2025 will pressure fiscal finances. Despite OPEC+ production cuts continuing into at least the first half of 2025, we expect Iraq's sizable oil export volumes will support external surpluses and foreign exchange reserves remaining in excess of $100 billion over 2025-2028. We therefore affirmed our 'B-/B' ratings on Iraq. The outlook is stable. On Feb. 7, 2025, 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 transfer and
