Fitch Affirms Qatar Rating at AA Amid LNG Export Disruption Concerns

Fitch Ratings has affirmed Qatar's Long-Term Issuer Default Rating at AA and removed it from Rating Watch Negative, with a negative outlook. The rating action reflects the risks associated with prolonged disruption to Qatar's liquefied natural gas exports through the Strait of Hormuz.

The agency assumes that a deal will enable the resumption of LNG exports through the Strait in 1Q27, after which it will take around six months to reach pre-war levels minus the 17% of capacity damaged by an Iranian attack on Ras Laffan in March.

Fitch forecasts Qatar's economy will contract by 18.8% this year due to lower LNG production, but anticipates a sharp rebound due to the normalization of LNG flows and the start of production from the North Field expansion.