New York’s S&P confirms Qatar’s credit rating at ‘AA- ‘, outlook stable

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New York’s S&P confirms Qatar’s credit rating at ‘AA- ‘, outlook stable

On Friday, the 8th of May 2020, the NY-based American credit rating agency, S&P Global Ratings, often contemplated as one of the big three sovereign credit rating agencies alongside Moody’s and Fitch, had affirmed Qatar’s credit rating at ‘AA-’ with stable outlook, adding that the rating agency was anticipating the Mideast nation’s external balance sheet to weather the fiscal storms stemmed from the pandemic outbreak.

On top of that, S&P Global Ratings had also added in its Friday’s (May 8th) statement that Qatar, the Western Asian nation holding 858 Tcf (trillion cubic feet) of proven gas reserves, ranking third across the globe, would deliver a timely policy response and bolster liquidities aimed at proffering sufficient buffers to cushion up its economy considering the extent of challenges grooming in the global capital markets.

In point of fact, latest S&P rating on Qatar’s sovereign debts comes over the heels of a dollar-denominated bond auction held last month, while the world’s fourth-largest natgas producer had raised a capital of $10 billion, remarking the first Gulf nation to raise fresh funds despite a growing number of odds including a cataclysmic demand crunch caused by the pandemic outbreak.

Meanwhile, referring to Qatar’s strong credit profit, the NY-based rating agency was quoted saying in a statement on Friday (May 8th), “Despite a sharp economic contraction and low hydrocarbon prices, we don't expect the government's fiscal and external stock positions will materially deteriorate beyond our expectations.