Doha – Mubasher: The cost of securing Qatar's sovereign debt rose from the risk of default on Thursday morning after the country’s credit rating dropped on Wednesday, according to Reuters.
Standard and Poor’s (S&P) on Wednesday downgraded Qatar’s sovereign credit outlook to “AA-“ from “AA” after some Arab and Gulf countries broke their diplomatic ties with Qatar.
S&P put Qatar on the CreditWatch list with negative implications, which means it is likely to downgrade its rating again.
Qatar's five-year credit risk swaps stood at 89 points, registering its highest level since December 2016, compared to 80 points on Sunday, and 65.5 points at the end of last week, Reuters added.
The GCC state’s credit risk swap contracts are expected to fall by 6% over the next five years.
Qatar's sovereign US dollar bonds on Monday declined by 1.8 cents to 99 cents per dollar, recording the lowest level since March 2017.
