Fitch: Iraqi banks shielded from falling oil prices

Iraq’s banking sector remains largely shielded from the impact of falling oil prices, Fitch Ratings reported on Saturday.

In its latest review, Fitch observed that while lower oil revenues and slowing global growth may pressure government spending across the Middle East, Iraqi banks are unlikely to suffer further credit downgrades.

“The banking sector in Iraq already holds low credit ratings, mostly in the ‘CCC’ category, and these are unlikely to deteriorate further given the Central Bank’s strong ability to sustain government expenditure,” the agency explained.

By contrast, Fitch warned that banks in Gulf countries could face tighter credit conditions if corporate earnings and liquidity decline, though robust financial buffers would help them weather potential shocks.

Founded in 1914, Fitch Ratings ranks among the world’s top three credit rating agencies, alongside Standard & Poor’s and Moody’s. The firm evaluates the financial health of countries and corporations, offering risk assessments that shape global investment decisions.

(Source:ShafaqNews)