Doha – Mubasher: Moody's Investors Service confirmed its long-term issuer and senior unsecured debt ratings for the government of Qatar at Aa2 and assigned a negative outlook, according to a statement released Saturday.
The international agency said that its rating confirmation reflects its view that, despite the negative effect from prolonged low oil prices on the Qatar's economy, government finances and external strength, and the sovereign's overall credit profile remains consistent with an Aa2 rating.
"The decision to assign a negative outlook captures the risks emanating from the comparatively stronger general government debt increase from already higher levels," Moody's said in a statement published on its official website.
It added that the negative outlook takes into account "implementation risks related to the Qatari government's reform plans, which Moody's assumes in its baseline scenario will be effective in protecting the country's economic and fiscal strengths."
Moody's noted that the rating action applies to the backed senior unsecured rating of SoQ Sukuk A Q.S.C., for which the rating was confirmed at Aa2 and assigned a negative outlook.
The rating action released on Saturday concludes Moody's review for the downgrade initiated on 4 March 2016," the statement said.
