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Moody's downgrade Qatar's rating outlook to negative

Staff Writer |
Moody's Investors Service lowered the outlook on Qatar's rating to negative from stable citing the ongoing dispute involving Qatar and a coalition of countries.

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The rating agency on Tuesday affirmed the sovereign ratings at Aa3'indicating that the sizable net asset position of the government as well as exceptionally high levels of wealth will significantly support to the sovereign credit profile.

Moody's assessed that the likelihood of a prolonged period of uncertainty extending into 2018 has increased. Moreover, a quick resolution of the dispute is unlikely over the next few months, which carries the risk that Qatar's sovereign credit fundamentals could be negatively affected.

Depending on the duration and potential further escalation of tensions, the dispute could negatively affect Qatar's economic and fiscal strength, the agency noted.

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