Doha, November 03 (QNA) – Moodys Investor Service has raised the State of Qatars credit outlook from stable to positive, and reaffirmed its rating as Aa3.
In its latest report Moodys confirmed that the decision to raise Qatar’s credit outlook had been attributed to the improved performance of its public debt management, which has been strengthened by the rise in global energy prices. The rating affirmation is supported by several strengths embedded in Qatar’s credit profile, which underpin the States demonstrated capacity to absorb shocks and longer-term credit challenges.
These strengths include Qatars exceptionally high level of per-capita income, its vast hydrocarbon reserves and low extraction costs, the governments robust net asset position, and its established track record of effective macroeconomic and fiscal management.
Moodys added that the increase in Qatars revenues contributed to the improved efficiency of the States public debt management. Capital spending reductions and increased Liquified Natural Gas (LNG) output have the potential to further offset the long-term impact of declining energy prices on its revenue.
The credit rating agency highlighted that previous concerns over Qatars over-reliance on oil as a revenue source had been offset by the States high per-capita income, its vast hydrocarbon reserves, and large stock of sovereign wealth fund assets. Further developing these sovereign assets and increasing stocks of natural gas into Qatars hydrocarbon mix will help to migrate exposure to longer-term credit risks. (QNA)
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