OECD Downgrades Iran Credit Rating

The Organization for Economic Cooperation and Development (OECD) downgraded Iran's rating in the country risk classifications of the Participants to the Arrangement on Officially Supported Export Credits (CRE) from 5 to 6, following a meeting held on June 26.

Increase in the convertibility and transfer risk as the results of the controversial decision made by the US administration on re-imposing sanctions on Iran could be the main reason behind OECD’s decision, experts familiar with the issue told the Financial Tribune.

The measure is raising concern over European Union’s ability to meet its commitments towards Iran following the US decision to unilaterally abandon the 2016 nuclear agreement.

In May, EU foreign policy chief, Federica Mogherini said  that the EU was preparing a nine-point economic plan to keep the Iran nuclear deal alive, including a plan for “the further provision of export credit and development of special purpose vehicles in financial banking, insurance and trade areas.”