Citing expectations of notable slowing in economic growth and concerns about fiscal and current account deficits widening, S&P has downgraded Qatar from AA to AA- as credit risk premia hit 2017 highs.
Qatar credit risk is at 2017 highs (but remains well below Jan 2016 recent highs) …
Full Statement from S&P…
RATING ACTION
On June 7, 2017, S&P Global Ratings lowered its long-term rating on the State of Qatar to ‘AA-‘ from ‘AA’ and placed the rating on CreditWatch with negative implications. The ‘A-1+’ short-term rating was affirmed. The Transfer & Convertibility assessment is ‘AA’.
As a “sovereign rating” (as defined in EU CRA Regulation 1060/2009 “EU CRA Regulation”), the ratings on the State of Qatar are subject to certain publication restrictions set out in Art 8a of the EU CRA Regulation, including publication in accordance with a pre-established calendar (see “Calendar Of 2017 EMEA Sovereign, Regional, And Local Government Rating Publication Dates published Dec. 16, 2016, on RatingsDirect). Under the EU CRA Regulation, deviations from the announced calendar are allowed only in limited circumstances and must be accompanied by a detailed explanation of the reasons for the deviation. In this case, the reason for the deviation is a significant geopolitical development impacting creditworthiness. The next scheduled rating publication on the sovereign rating on the State of Qatar will be on Aug. 25, 2017.
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