Credendo downgraded the short-term political risk to category 7/7 and went off cover in 2014 when IS was approaching Bagdad. Recently, the security situation has continued to improve and the political situation has stabilised. With international support, the territory of IS has been sharply reduced in the past months. The result is that IS currently only holds territory in the north-west of the country close to the Syrian border, around the city of Hawija and parts of the city of Mosul. Therefore the short-term political risk is upgraded from category 7/7 to 6/7. However, the cover policy is restrictive and coverage is only provided for debtors in Bagdad and the south of the country.