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Regulatory Disclosures
Iraq, Government of
1. The Symbol, Number, or Score in the Rating Scale and the Identity of the Obligor or the Identity and a Description of the Security or Money Market Instrument as required by Paragraph (a)(1)(ii)(A) of SEC Rule 17g-7
Issuer/Deal Name:Iraq, Government of
Rating: (P)Caa1
Identifier: MDY: 824713348
Description: Senior Unsecured; Currency: USD
Credit Rating Action Date: 20 Sep 2015
2. The Version of the Procedure or Methodology Used to Determine the Credit Rating as required by Paragraph (a)(1)(ii)(B) of SEC Rule 17g-7
Principal Methodology
The principal methodology used in this rating was Sovereign Bond Ratings published on 12-Sep-2013.
Procedure
Not Applicable
3. Main Assumptions and Principles used to Construct the Rating Methodology used to Determine the Credit Rating as required by Paragraph (a)(1)(ii)© of SEC Rule 17g-7
Methodology Assumptions
The main assumptions underlying the methodology used to determine the credit rating are:
1) Expected future economic trends and operating environment of the relevant sector are assumed to be predictive for the likelihood of default and expected loss.
2) Expectations for institutional framework and management's capabilities and approach to financial risks are assumed to be predictive for the likelihood of default and expected loss.
3) Indicators for financial position and performance are assumed to be predictive for the likelihood of default and expected loss, and the rating category criteria are believed to be appropriate.
4) Indicators for leverage and debt coverage are assumed to be predictive for the likelihood of default and expected loss, and the rating category criteria are believed to be appropriate.
5) Expectations for legal, regulatory, liquidity, and financial market risks, integrity and transparency of financial reporting, governance, financial performance of counterparties and the likelihood and nature of support by a government or financial party are assumed to be predictive for the likelihood of default/expected loss.
4. The Potential Limitations of the Credit Rating as required by Paragraph (a)(1)(ii)(D) of SEC Rule 17g-7
Limitations
Credit ratings are Moody's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities rated by Moody's. Moody's defines credit risk as the risk that an entity may not meet its contractual, financial obligations as they come due and any estimated financial loss in the event of default. Credit ratings do not address any other risk, including but not limited to: market liquidity risk, market value risk, or price volatility. Credit ratings are not statements of current or historical fact. Credit ratings do not constitute investment or financial advice, and credit ratings are not recommendations to purchase, sell, or hold particular securities. Credit ratings do not comment on the suitability of an investment for any particular investor. Moody's issues its credit ratings with the expectation and understanding that each investor will make its own study and evaluation of each security that is under consideration for purchase, holding, or sale.
5. Information on the Uncertainty of the Credit Rating as required by Paragraph (a)(1)(ii)(E) of SEC Rule 17g-7
Uncertainty
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating. Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
6. Whether and to What Extent the NRSRO Used Due Diligence of a Third Party in Taking the Credit Rating Action as required by Paragraph (a)(1)(ii)(F) of SEC Rule 17g-7
Due Diligence
Not Applicable
7. How Servicer or Remittance Reports were Used, and with What Frequency, to Conduct Surveillance of the Credit Rating as required by Paragraph (a)(1)(ii)(G) of SEC Rule 17g-7
Surveillance Reports
Not Applicable
8. A Description of the Types of Data About Any Obligor, Issuer, Security, or Money Market that were Relied Upon for the Purpose of Determining the Credit Rating as required by Paragraph (a)(1)(ii)(H) of SEC Rule 17g-7
Sources and Types of Information
Information sources used to prepare the rating are the following:
Parties involved in the rating
Parties not involved in the rating
Public information
Information types used to prepare the rating include the following:
Financial data
Economic and demographic data
Public information
Government policy documents
9. A Statement Containing an Overall Assessment of the Quality of Information Available and Considered in Determining the Credit Rating as required by Paragraph (a)(1)(ii)(I) of SEC Rule 17g-7
Quality of Information
Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable, including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. The information available and considered in determining the credit rating is of appropriate quality relative to that available for similar obligors, securities or money market instruments.
10. Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7
Paid Status
Moody's was not paid to determine this credit rating.
Credit Rating Action Due to Look-back Review
Not Applicable
11. An Explanation or Measure of the Potential Volatility of the Credit Rating as required by Paragraph (a)(1)(ii)(K) of SEC Rule 17g-7
Volatility
Credit ratings incorporate Moody's macroeconomic outlook and its implications on key variables that may include but not be limited to interest rates, inflation, economic growth, unemployment, performance of counterparties, credit availability, sector level changes in competitive conditions, supply/demand and margins, and issuer specific changes in capital structure, competitive positioning, governance, risk profile, and liquidity. Unexpected changes in such variables may lead to changes in the credit rating level, potentially by several notches. Further information on the sensitivity of the rating to specific assumptions is included in this disclosure.
12. Information on the Content of the Credit Rating as required by Paragraph (a)(1)(ii)(L) of SEC Rule 17g-7
Rating History and Performance
Moody's credit ratings are opinions of the relative credit risk of financial obligations translating into an ordinal ranking of issuers and financial obligations across asset classes and geographies. As such, no absolute probability of default nor expected loss given default is assigned to each individual credit rating. Please refer to the following link for an index of Moody's default studies. Guides to Moody's Default Research.
13. Information on the Sensitivity of the Credit Rating to Assumptions as required by Paragraph (a)(1)(ii)(M) of SEC Rule 17g-7
Sensitivity to Assumptions
1) If Moody's assumptions for the relevant economic strength of a particular sector are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
2) If Moody's assumptions for institutional framework and management's capabilities and approach to operating and financial risks are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
3) If Moody's assumptions about financial position and performance, including fixed costs, financial flexibility and ability to achieve budget balance are materially lower (higher) than actual future results, this could result in positive (negative) implications for the rating.
4) If Moody's assumptions about leverage and debt coverage are materially lower (higher) than actual future results, this could result in positive (negative) implications for the rating.
5) If Moody's assumptions about legal, regulatory, liquidity, and financial market risks, integrity and transparency of financial reporting, governance, and the likelihood and nature of support by a government or financial party are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
14. Information on the Representations, Warranties, and Enforcement Mechanisms as required by Paragraph (a)(1)(ii)(N)(1) of SEC Rule 17g-7
Representations and Warranties
Not Applicable
15. Definitions
MIS Ratings Definitions
Please see Moody's Rating Symbols and Definitions on the Rating Definitions page on [You must be registered and logged in to see this link.] for further information on the meaning of each rating category and the definition of default and recovery.
16. Information and Data
Due Diligence (European Union offices only)
Not Applicable.
Information Disclosure from Rated Entity (Australia, Hong Kong and Singapore offices only)
Not Applicable
Disclosure to Rated Entity (European Union, Hong Kong, Singapore and South Africa offices only)
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
Rating History and Performance (European Union offices only)
The European Securities and Markets Authority (ESMA) has established a central repository (CEREP) on its website that includes historic default rates and accompanying information which may differ from Moody's current definitions and explanations.
Timing of Publication
Not Applicable
17. Time Horizon
Time Horizon of Rating Outlook and Rating Review
Please see Moody's Rating Symbols and Definitions on the Rating Definitions page on [You must be registered and logged in to see this link.] for further information on the time horizon in which a credit rating action may be expected after a review or outlook action took place.
18. Potential Conflicts of Interest
General Conflict Disclosure
Please see the ratings disclosure page on [You must be registered and logged in to see this link.] for general disclosure on potential conflicts of interests.
Non-Participating Rated Entities
The rated entity or its agent(s) did not participate in the rating process. Moody's was not provided, for purposes of the rating, access to the books, records and other relevant internal documents of the rated entity.
Ancillary Services (European Union and Dubai offices only)
Moody's has not provided advisory services but may have provided Ancillary or Other Permissible Service(s) to the rated entity, its related third parties and/or the party that requested the rating within the past two years (including during the most recently ended fiscal year). Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's credit rating agencies in the EU or the DIFC" on the ratings disclosure page [You must be registered and logged in to see this link.] on our website for further information.
Board Members of MIS (European Union offices only)
Not Applicable
Shareholders and Affiliations
Please see the ratings disclosure page on [You must be registered and logged in to see this link.] for disclosures on significant Moody's shareholders and on certain relationships between Moody's, its shareholders and/or rated issuers.
19. Other
EU Endorsement
Not Applicable
Supplemental Information
Some Securities rated by Moody's benefit from support from a third party. Moody's ratings on securities that are guaranteed or insured are generally maintained at a level equal to the higher of the following: (a) the rating of the guarantor or insurer; or (B) the rating on the security without the benefit of a guarantee or insurance if such rating has been determined.
Rating Outlook and Rating Review
Regulatory disclosures contained in this form apply to the credit rating and, if applicable, the related rating outlook or rating review.
20. Attestation as required by Paragraph (a)(1)(iii) of SEC Rule 17g-7
Attestation
I hereby attest, as a person with responsibility for this Credit Rating Action, that to the best of my knowledge, based on (i) my participation in the rating committee that determined to take this Credit Rating Action, (ii) any materials I have reviewed in connection with the rating committee, and (iii) the attestations I have received from other members of the rating committee:
1. No part of this Credit Rating Action was influenced by any other business activities of Moody's Corporation -i.e., this Credit Rating Action was not affected by the existence of, or potential for, other business relationships between Moody's Investors Service or its affiliates and the Rated Entity or its affiliates, or the non-existence of any such relationships;
2. This Credit Rating Action was based solely on the merits of the obligor(s), security(ies) or instrument(s) being rated; and
3. This Credit Rating Action was an independent evaluation of the credit risk of the obligor(s), security(ies), or instrument(s) assessed in this Credit Rating Action and is subject to the potential limitations of the Credit Rating disclosed with this Credit Rating Action.
[You must be registered and logged in to see this link.]
Iraq, Government of
1. The Symbol, Number, or Score in the Rating Scale and the Identity of the Obligor or the Identity and a Description of the Security or Money Market Instrument as required by Paragraph (a)(1)(ii)(A) of SEC Rule 17g-7
Issuer/Deal Name:Iraq, Government of
Rating: (P)Caa1
Identifier: MDY: 824713348
Description: Senior Unsecured; Currency: USD
Credit Rating Action Date: 20 Sep 2015
2. The Version of the Procedure or Methodology Used to Determine the Credit Rating as required by Paragraph (a)(1)(ii)(B) of SEC Rule 17g-7
Principal Methodology
The principal methodology used in this rating was Sovereign Bond Ratings published on 12-Sep-2013.
Procedure
Not Applicable
3. Main Assumptions and Principles used to Construct the Rating Methodology used to Determine the Credit Rating as required by Paragraph (a)(1)(ii)© of SEC Rule 17g-7
Methodology Assumptions
The main assumptions underlying the methodology used to determine the credit rating are:
1) Expected future economic trends and operating environment of the relevant sector are assumed to be predictive for the likelihood of default and expected loss.
2) Expectations for institutional framework and management's capabilities and approach to financial risks are assumed to be predictive for the likelihood of default and expected loss.
3) Indicators for financial position and performance are assumed to be predictive for the likelihood of default and expected loss, and the rating category criteria are believed to be appropriate.
4) Indicators for leverage and debt coverage are assumed to be predictive for the likelihood of default and expected loss, and the rating category criteria are believed to be appropriate.
5) Expectations for legal, regulatory, liquidity, and financial market risks, integrity and transparency of financial reporting, governance, financial performance of counterparties and the likelihood and nature of support by a government or financial party are assumed to be predictive for the likelihood of default/expected loss.
4. The Potential Limitations of the Credit Rating as required by Paragraph (a)(1)(ii)(D) of SEC Rule 17g-7
Limitations
Credit ratings are Moody's current opinions of the relative future credit risk of entities, credit commitments, or debt or debt-like securities rated by Moody's. Moody's defines credit risk as the risk that an entity may not meet its contractual, financial obligations as they come due and any estimated financial loss in the event of default. Credit ratings do not address any other risk, including but not limited to: market liquidity risk, market value risk, or price volatility. Credit ratings are not statements of current or historical fact. Credit ratings do not constitute investment or financial advice, and credit ratings are not recommendations to purchase, sell, or hold particular securities. Credit ratings do not comment on the suitability of an investment for any particular investor. Moody's issues its credit ratings with the expectation and understanding that each investor will make its own study and evaluation of each security that is under consideration for purchase, holding, or sale.
5. Information on the Uncertainty of the Credit Rating as required by Paragraph (a)(1)(ii)(E) of SEC Rule 17g-7
Uncertainty
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating. Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
6. Whether and to What Extent the NRSRO Used Due Diligence of a Third Party in Taking the Credit Rating Action as required by Paragraph (a)(1)(ii)(F) of SEC Rule 17g-7
Due Diligence
Not Applicable
7. How Servicer or Remittance Reports were Used, and with What Frequency, to Conduct Surveillance of the Credit Rating as required by Paragraph (a)(1)(ii)(G) of SEC Rule 17g-7
Surveillance Reports
Not Applicable
8. A Description of the Types of Data About Any Obligor, Issuer, Security, or Money Market that were Relied Upon for the Purpose of Determining the Credit Rating as required by Paragraph (a)(1)(ii)(H) of SEC Rule 17g-7
Sources and Types of Information
Information sources used to prepare the rating are the following:
Parties involved in the rating
Parties not involved in the rating
Public information
Information types used to prepare the rating include the following:
Financial data
Economic and demographic data
Public information
Government policy documents
9. A Statement Containing an Overall Assessment of the Quality of Information Available and Considered in Determining the Credit Rating as required by Paragraph (a)(1)(ii)(I) of SEC Rule 17g-7
Quality of Information
Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable, including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. The information available and considered in determining the credit rating is of appropriate quality relative to that available for similar obligors, securities or money market instruments.
10. Information Relating to Conflicts of Interest as required by Paragraph (a)(1)(ii)(J) of SEC Rule 17g-7
Paid Status
Moody's was not paid to determine this credit rating.
Credit Rating Action Due to Look-back Review
Not Applicable
11. An Explanation or Measure of the Potential Volatility of the Credit Rating as required by Paragraph (a)(1)(ii)(K) of SEC Rule 17g-7
Volatility
Credit ratings incorporate Moody's macroeconomic outlook and its implications on key variables that may include but not be limited to interest rates, inflation, economic growth, unemployment, performance of counterparties, credit availability, sector level changes in competitive conditions, supply/demand and margins, and issuer specific changes in capital structure, competitive positioning, governance, risk profile, and liquidity. Unexpected changes in such variables may lead to changes in the credit rating level, potentially by several notches. Further information on the sensitivity of the rating to specific assumptions is included in this disclosure.
12. Information on the Content of the Credit Rating as required by Paragraph (a)(1)(ii)(L) of SEC Rule 17g-7
Rating History and Performance
Moody's credit ratings are opinions of the relative credit risk of financial obligations translating into an ordinal ranking of issuers and financial obligations across asset classes and geographies. As such, no absolute probability of default nor expected loss given default is assigned to each individual credit rating. Please refer to the following link for an index of Moody's default studies. Guides to Moody's Default Research.
13. Information on the Sensitivity of the Credit Rating to Assumptions as required by Paragraph (a)(1)(ii)(M) of SEC Rule 17g-7
Sensitivity to Assumptions
1) If Moody's assumptions for the relevant economic strength of a particular sector are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
2) If Moody's assumptions for institutional framework and management's capabilities and approach to operating and financial risks are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
3) If Moody's assumptions about financial position and performance, including fixed costs, financial flexibility and ability to achieve budget balance are materially lower (higher) than actual future results, this could result in positive (negative) implications for the rating.
4) If Moody's assumptions about leverage and debt coverage are materially lower (higher) than actual future results, this could result in positive (negative) implications for the rating.
5) If Moody's assumptions about legal, regulatory, liquidity, and financial market risks, integrity and transparency of financial reporting, governance, and the likelihood and nature of support by a government or financial party are materially worse (better) than actual future results, this could result in positive (negative) implications for the rating.
14. Information on the Representations, Warranties, and Enforcement Mechanisms as required by Paragraph (a)(1)(ii)(N)(1) of SEC Rule 17g-7
Representations and Warranties
Not Applicable
15. Definitions
MIS Ratings Definitions
Please see Moody's Rating Symbols and Definitions on the Rating Definitions page on [You must be registered and logged in to see this link.] for further information on the meaning of each rating category and the definition of default and recovery.
16. Information and Data
Due Diligence (European Union offices only)
Not Applicable.
Information Disclosure from Rated Entity (Australia, Hong Kong and Singapore offices only)
Not Applicable
Disclosure to Rated Entity (European Union, Hong Kong, Singapore and South Africa offices only)
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
Rating History and Performance (European Union offices only)
The European Securities and Markets Authority (ESMA) has established a central repository (CEREP) on its website that includes historic default rates and accompanying information which may differ from Moody's current definitions and explanations.
Timing of Publication
Not Applicable
17. Time Horizon
Time Horizon of Rating Outlook and Rating Review
Please see Moody's Rating Symbols and Definitions on the Rating Definitions page on [You must be registered and logged in to see this link.] for further information on the time horizon in which a credit rating action may be expected after a review or outlook action took place.
18. Potential Conflicts of Interest
General Conflict Disclosure
Please see the ratings disclosure page on [You must be registered and logged in to see this link.] for general disclosure on potential conflicts of interests.
Non-Participating Rated Entities
The rated entity or its agent(s) did not participate in the rating process. Moody's was not provided, for purposes of the rating, access to the books, records and other relevant internal documents of the rated entity.
Ancillary Services (European Union and Dubai offices only)
Moody's has not provided advisory services but may have provided Ancillary or Other Permissible Service(s) to the rated entity, its related third parties and/or the party that requested the rating within the past two years (including during the most recently ended fiscal year). Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's credit rating agencies in the EU or the DIFC" on the ratings disclosure page [You must be registered and logged in to see this link.] on our website for further information.
Board Members of MIS (European Union offices only)
Not Applicable
Shareholders and Affiliations
Please see the ratings disclosure page on [You must be registered and logged in to see this link.] for disclosures on significant Moody's shareholders and on certain relationships between Moody's, its shareholders and/or rated issuers.
19. Other
EU Endorsement
Not Applicable
Supplemental Information
Some Securities rated by Moody's benefit from support from a third party. Moody's ratings on securities that are guaranteed or insured are generally maintained at a level equal to the higher of the following: (a) the rating of the guarantor or insurer; or (B) the rating on the security without the benefit of a guarantee or insurance if such rating has been determined.
Rating Outlook and Rating Review
Regulatory disclosures contained in this form apply to the credit rating and, if applicable, the related rating outlook or rating review.
20. Attestation as required by Paragraph (a)(1)(iii) of SEC Rule 17g-7
Attestation
I hereby attest, as a person with responsibility for this Credit Rating Action, that to the best of my knowledge, based on (i) my participation in the rating committee that determined to take this Credit Rating Action, (ii) any materials I have reviewed in connection with the rating committee, and (iii) the attestations I have received from other members of the rating committee:
1. No part of this Credit Rating Action was influenced by any other business activities of Moody's Corporation -i.e., this Credit Rating Action was not affected by the existence of, or potential for, other business relationships between Moody's Investors Service or its affiliates and the Rated Entity or its affiliates, or the non-existence of any such relationships;
2. This Credit Rating Action was based solely on the merits of the obligor(s), security(ies) or instrument(s) being rated; and
3. This Credit Rating Action was an independent evaluation of the credit risk of the obligor(s), security(ies), or instrument(s) assessed in this Credit Rating Action and is subject to the potential limitations of the Credit Rating disclosed with this Credit Rating Action.
[You must be registered and logged in to see this link.]
