Fitch Reaffirms Qatar's AA Rating Despite LNG Export Disruptions

Fitch Ratings has reaffirmed Qatar's Long-Term Issuer Default Rating at AA, but removed it from Rating Watch Negative. The Outlook is Negative due to risks associated with prolonged disruption to Qatar's LNG exports through the Strait of Hormuz.

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

LNG exports through the Dolphin pipeline and within the Strait have not been affected. Fitch forecasts that Qatar's economy will contract by 18.8% this year, but is expecting a sharp rebound due to normalized LNG flows and the start of production from the North Field expansion.