Fitch downgrades Iran

Fitch Ratings said it downgraded the Islamic Republic of Iran's foreign-currency and local-currency issuer default ratings and country ceiling to B+ from BB- and affirmed the B short-term rating. The outlook is stable.

The downgrade reflects the escalating confrontation between Iran and the international community over Iran's nuclear program; material sanctions are still some way off, but the risk is increasing and events are becoming increasingly unpredictable, the agency said.

Nevertheless, the stable outlook acknowledges that at current high oil prices, Iran's external financial position remains strong. Fitch said that despite rapid spending increases, last year's budget and current account surpluses will likely be maintained this year and the external balance sheet will strengthen further.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.