Fitch Lifts Qatar's Credit Rating on Reduced LNG Disruption Fears

Fitch Ratings has lifted Qatar's credit rating from its 'rating watch negative' list, citing reduced risks to the country's liquefied natural gas facilities. This decision comes as the US-Iran conflict subsides, and the Strait of Hormuz reopens for LNG exports.

The ratings agency believes some form of peace deal will be reached by 2027, allowing for resumed exports through the strait in the first quarter. However, Qatar's economy is expected to contract by 19% this year due to lower LNG production.

Fitch anticipates a sharp rebound as LNG flows normalize and output from the North Field expansion begins. Growth is predicted to reach double digits in 2028.