Ratings upgrade gives breathing room to Qatar

Rating agency Moody’s has upgraded Qatar’s long-term issuer ratings from negative to stable.

The decision is based on Moody’s assessment that Qatar can withstand the current economic and political boycott it faces from its GCC neighbours for an extended period of time without material deterioration of its credit profile.

Moody’s has also affirmed Qatar’s long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.

According to the rating agency this decision takes into account a number of strengths in Qatar’s credit profile that “continue to provide a significant shock absorption capacity to the sovereign”.

These strengths include the government’s large net asset position, exceptionally high levels of per-capita income and very large hydrocarbon reserves.

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