We understand that Iraq's external balance sheet and fiscal position improved in 2018 owing to relatively high oil prices. We expect that lower oil prices and an expansionary government budget will likely reverse this improvement in 2019. We are therefore affirming our 'B-/B' sovereign credit ratings on Iraq. The outlook is stable. On Feb. 22, 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 to Iraq's fiscal performance will be contained. The government's extremely expansionary 2019 budget faces limitations on potential financing lines, as well as conditions associated with the possible resumption of Iraq's IMF program. We
