Qatar's Credit Rating Boosted Despite LNG Export Disruptions

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 LNG exports through the Strait of Hormuz.

The agency notes that while disruption to the Strait has compromised Qatar's ability to export LNG, a deal is expected to enable resumption of exports in 1Q27, with levels reaching pre-war levels minus 17% capacity damaged by an Iranian attack on Ras Laffan in March within six months.

Fitch forecasts Qatar's economy will contract by 18.8% this year due to lower LNG production, but anticipates a sharp rebound due to the normalization of LNG flows and the start of production from the North Field expansion.