Negative Outlook For Sovereign

October 2008 | Market Alert

We have revised downwards Iraq's sovereign risk rating for 2009 from D to E-. Our gloomy outlook is driven by a dramatic fall in its Ability to Pay score (from 31/55 to 20/55). Recent moves in the yield of Iraq's US$ Global 2028 bond underscores this view. Our views on the instrument were ahead of the curve: we turned cautious on the bond in mid-August, since when its yield has increased from 8.9% to 12.0%,

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