Capital Intelligence Ratings (CI Ratings), the international credit rating agency, has announced that it has affirmed Iran's Long-Term Foreign and Local Currency Sovereign Ratings at 'BB-' and its Short-Term Foreign and Local Currency Sovereign Ratings at 'B'.
At the same time, the outlook for Iran's ratings was revised to 'Negative' from 'Stable', CI reported on its website as part of its latest assessment of Iran's economic and political situation.
According to CI's report, Iran’s ratings are supported by very low public external debt, large external assets due to persistent current account surpluses, substantial hydrocarbon resources and comparatively high skills of workforce.
The agency reckons that Iran’s ratings are hampered by structural constraints (e.g. weak business environment and weak banking system), low institutional strength, high external stability risks, limited integration in global banking system and weak data transparency.
The rating agency explains that the change of outlook for Iran to "Negative" reflects rising external political risks that weigh on future economic growth prospects by keeping uncertainty high and by complicating the implementation of the government’s ambitious economic reform agenda.
May 02, 2018 20:44
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CI Affirms Iran’s Sovereign Ratings
According to CI’s report, Iran’s ratings are supported by very low public external debt, large external assets due to persistent current account surpluses, substantial hydrocarbon resources and a comparatively high skilled workforce
Economic growth has resumed following the implementation of JCPOA in January 2016, but has so far not led to a marked improvement of economic conditions
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