Fitch removes Qatar from 'Negative Watch' and confirms AA rating - Sarmad

Fitch Ratings removed Qatar from its negative watchlist and maintained its sovereign credit rating at AA on Friday, citing a decline in risks to liquefied natural gas (LNG) facilities since March.

However, the agency kept Qatar’s outlook negative due to ongoing risks stemming from disruptions to LNG exports through the Strait of Hormuz.

Qatar was among the economies that saw the largest downward revisions in forecasts in a Reuters poll, with gross domestic product expected to contract by 8.1 percent this year, compared to an earlier April forecast of a 6 percent decline.

In a statement, Fitch said, “It will take longer to absorb the impact of the war on creditworthiness.”

Qatar, one of the world’s largest LNG exporters, is grappling with export disruptions via the Strait of Hormuz and shortages linked to damage to energy facilities.

The rating confirmation comes months after Fitch warned of a potential downgrade of Qatar’s sovereign rating, amid growing concerns over the security and economic fallout of the war with Iran.

Reuters reported last month that Qatar lost approximately $24 billion in LNG sales since the conflict began six months ago.

S&P Global Ratings and Moody’s Investors Service also affirmed Qatar’s rating earlier this year, stating that its strong financial position mitigates the impact of the US-Israeli war on Iran.