The extent of credit rating agencies’ contribution to revitalising the Iraqi Stock Exchange during the period 2020-2024

The research aimed to highlight the role of credit rating agencies, their contribution to revitalising the Iraqi Stock Exchange, and their importance for financial and international institutions in contexts characterised by the diverse use of high-risk investment tools, weak information flows, and low efficiency. In this research, it had become very difficult to obtain information about what was traded in the financial markets. The study analysed credit rating agencies in order to evaluate, determine, and disclose information in a more transparent, accurate, and objective manner, to attract the largest possible number of investors and provide support to dealers within these markets. The analysis relied on a group of banks that obtained a credit rating and presented a clear comparison between 2020 – before obtaining the credit rating – and the years 2021-2024 – after obtaining the rating. The results indicated that Iraq had suffered from a lack of specialised organisations or bodies that promoted the importance of credit rating at the local and global levels, especially since some banks had fallen under the rating ceiling. The credit rating was issued after obtaining approvals from the Central Bank of Iraq to provide services, including expanding the base of foreign transactions, such as the provision of contractual credits. The largest share of the benefit derived from the rating went to the National Bank of Iraq, followed by the Regional Commercial Bank. The practical value of the study lies in the possibility of adopting its results by decision-makers and policymakers to improve the performance of the Iraqi Stock Exchange. Activating and reinforcing the role of credit rating agencies will contribute to enhancing investor confidence and attracting capital to the Iraqi market