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Summary

Ref: qa20cra00-02 17 July 2020

Ref: QA20CRA00-02 17 J uly 2020

Qatar’s Sovereign Ratings Affirmed 

Rating Action

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) of Qatar at ‘A A- ’ . The sovereign’s Short-Term Foreign Currency Rating (ST FC R ) and Short-Term Local Currency Rating (ST LC R ) have also been affirmed at ‘A1 + ’. The Outlook for the ratings remains Stable.

Rating Rationale

The ratings are supported by substantial government assets under the management of the sovereign wealth fund, the Qatar Investment Authority (QIA), very large hydrocarbon reserves, a high degree of expenditure flexibility , and low domestic political risk. The ratings are constrained by the economic fallout from Covid-19, the economy’s limited diversification, the government’s very large contingent liabilities , and substantial…