Fitch Affirms Qatar Rating at AA Amid Reduced LNG Export Risks

Fitch Ratings has affirmed Qatar's Long-Term Issuer Default Ratings at AA and removed them from Rating Watch Negative, citing reduced risks of severe damage to the country's liquefied natural gas (LNG) exports through the Strait of Hormuz.

The rating agency assumes a deal will enable resumption of LNG exports in 1Q27, after which it will take around six months for Qatar to reach pre-war levels minus 17% 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 expects a sharp rebound as LNG flows normalize and the North Field expansion begins.