Last Update 22:7
Tuesday, 12 November 2019

Qatar credit quality to decline if GCC tensions persist: Moody's

Reuters , Thursday 8 Jun 2017
Qatar Stock Exchange
FILE PHOTO: Traders monitor screens displaying stock information at Qatar Stock Exchange in Doha (Photo: Reuters)
Views: 2948
Views: 2948

Qatar's credit quality would decline if tensions with its Gulf neighbours continue for much longer, raising the country's debt ratio and hurting banks' liquidity, Moody's ratings agency said on Thursday.

"A prolonged or deepening rift between Qatar and its GCC neighbours would potentially have a more marked financial effect and increase funding costs for the sovereign and other Qatari entities," Moody's told clients.

It currently rates Qatar at A3 with a stable outlook, or four notches above junk.

"An escalation could include restrictions on capital flows, which would be negative for Qatari banks' liquidity and funding," Moody's said, adding that total external debt was 150 percent of gross domestic product.

Eight mostly Arab countries, including Saudi Arabia, Egypt and United Arab Emirates this week severed diplomatic relations with Gulf Cooperation Council (GCC) member Qatar while also suspending air, land and sea transport and imposing travel bans.

Rival ratings agency S&P Global cut its rating on Qatar on Wednesday to AA- and put the rating on CreditWatch with negative implications, meaning there was a significant chance of a further downgrade.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.