Fitch Maintains 'AA' Rating for Qatar Amid Strait of Hormuz Disruptions
Fitch Ratings has maintained Qatar's Long-Term Issuer Default Rating (IDR) at 'AA' but assigned a negative outlook due to concerns about the prolonged disruption of liquefied natural gas (LNG) exports through the Strait of Hormuz.
The rating agency removed Qatar from Rating Watch Negative (RWN) due to reduced risks since March, despite acknowledging the vulnerability of its LNG facilities.
The 'AA' rating reflects Qatar's high GDP per capita, large sovereign assets, and expected growth in public finances driven by additional gas production and a flexible public finance structure.
However, Fitch notes that Qatar is heavily reliant on hydrocarbons, which exposes it to geopolitical risks. The country's government debt-to-GDP ratio is higher than its oil-dependent peers, and it has substantial contingent liabilities.