Fitch Removes Qatar from Rating Watch Negative, Keeps Negative Outlook

Global ratings agency Fitch has removed Qatar from its 'Rating Watch Negative' list and maintained its sovereign rating at 'AA', citing reduced risks to its liquefied natural gas (LNG) facilities since March. However, the agency kept a negative outlook for Qatar due to lingering concerns about LNG exports through the Strait of Hormuz.

Qatar's economy has been severely impacted by the ongoing conflict in the region, with its gross domestic product expected to contract 8.1% this year, compared to a forecast decline of 6% in April. The country has lost approximately $24 billion in gas sales since the conflict began six months ago.

Fitch's decision comes after the agency warned earlier this year about the potential downgrade of Qatar's sovereign rating due to concerns about security and economic fallout from the Iran war. S&P and Moody's had also affirmed Qatar earlier this year, citing its 'sizable' fiscal profile as a cushion against the impact of the conflict.