BRICS promotes Iran’s credit ranking

BRICS promotes Iran’s credit ranking
ID : N-356 Date : 2017/09/24 - 15:22

(Persia digest)-  The Technical Deputy Director and MoB for the Export Guarantee Fund of Iran has announced that Iran’s ranking with BRICS has returned to the time before the sanctions.

In an interview with IRNA, Seyed Arash Shahrayini has said that Iran's credit rating at the Organization for Economic Cooperation and Development (OECD) is placed in Group 6, and its rating with BRICS is between 3-6. He reiterated that not only has Iran’s ratings at BRICS improved following the JCPOA nuclear deal, it is even better than before in some cases. For instance, the Indian Export Guarantee Fund has allocated a ranking of 3 out of 7 to Iran in its classifications. Sinosure of China has also allocated a ranking of 5 out of 9 to Iran, which is the equivalent of 4 out of 7 groups. Russia has placed Iran in its group of four rankings and South Africa at 5 out of 7.  

Shahrayini explained that the initial importance of this ranking is seen in country risks by reducing or increasing the cost of investment. Countries provide different financing packages to recipient countries.

He went on to say that given Iran's improved credit ratings in countries such as India, Russia, China, and even South Africa, it can receive more attractive financial packages from them than from European countries. He added that financing includes interests on loans and insurance (risk coverage); these costs vary according to country risk classifications. The lower the risks, the lower the costs.

Following the nuclear agreement, Iran has been able to attract over USD 46BN from China, Russia, India, S Korea, Austria, and Denmark. Negotiations are taking place to attract more resources.

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