Fnu Lnu – Dinar Guru Article: “Moody’s has changed its outlook on the Government of Iraq to negative from stable and affirmed the long-term issuer ratings at Caa1…The change in the outlook to negative reflects rising risks to Iraq’s credit profile stemming from the conflict in the Middle East, as risks to energy flows and the security situation remain elevated.” This verifies my contention that the war is and has caused serious degradation of the economic outlook for Iraq.
BGG Response: I almost didn’t post this – but I did, so I could post a response. I don’t see this as a long-term problem. If Iraq is ever to stand on it’s own (and it needs to), Iran has to be dealt with (including the Shia PMUs in Iraq). Better it happens now than later.
The Iraqi PMUs have evolved into a mini-Hamas, Hezbollah, Houthi type Iranian proxy in the region. It appears Washington has the appetite to deal with all of them at once. Further, the President has made it VERY CLEAR Maliki IS NOT an acceptable candidate. Probably not Sudani either. JMHO.