Qatar’s credit rating cut over Gulf blockade crisis

https://www.rt.com/business/391346-sp-downgrades-qatar-credit-rating/

International rating agency Standard & Poor’s (S&P) has downgraded Qatar’s credit rating as outflows from portfolio investments have dragged the emirate’s national currency to 11-year lows.

The Arab Gulf state’s long-term rating was cut one notch to AA- from AA. The agency put the rating on CreditWatch with negative implications, expecting further lowering.

Earlier this week, some Muslim countries led by neighboring Saudi Arabia cut diplomatic, trade and transport ties with Qatar due to alleged support of terrorism, a charge that Doha denies.

S&P said the blockade could exacerbate Qatar’s external vulnerabilities and put pressure on economic growth and fiscal stability.

“We expect that economic growth will slow, not just through reduced regional trade, but as corporate profitability is damaged because regional demand is cut off, investment is hampered, and investment confidence wanes,” said the US-based agency.

In the meantime, Moody’s Investors Service puts the country at Aa3. That is equal to S&P’s current assessment. Fitch Ratings assesses Qatar higher at AA.

On Wednesday, the Qatari riyal dropped to 0.27 against the dollar, its lowest level since July 2005, according to Thomson Reuters.

The low in the futures market reportedly led to the riyal’s depreciation by another 1.5 percent in the next 12 months. At the same time, it indicated significant outflows of money from Qatar in the coming months.

———-

more agency work..

“The Arab Gulf state’s long-term rating was cut one notch to AA- from AA. The agency put the rating on CreditWatch with negative implications, expecting further lowering.”

leading the frontline battle..

401

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~ by seeker401 on June 16, 2017.

4 Responses to “Qatar’s credit rating cut over Gulf blockade crisis”

  1. Haha, you couldn’t make this up…
    http://www.businessinsider.com/qatar-buys-f15-from-us-2017-6

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