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LoginFitch Affirms Qatar's Credit Rating at AA Amid Outlook for Strong Economic Rebound in 2027 and 2028
Doha, September 05 (QNA) - Global credit rating agency Fitch Ratings has affirmed Qatar's Long-Term Issuer Default Ratings (IDRs) at 'AA' with a stable outlook, reflecting confidence in the strength and resilience of the Qatari economy.
The agency attributed its decision to easing risks following the subsidence of threats to liquefied natural gas (LNG) facilities. It projected that Qatar's economy will experience a strong rebound driven by the resumption of gas exports and the onset of additional production from the North Field expansion, pushing growth rates into the double digits by 2028 following a significant surge in production capacity starting in 2027.
Fitch projected that the state budget will achieve a surplus by 2027, which will widen further the following year, supported by the launch of the Golden Pass LNG facility in the US. The agency noted that the banking sector has demonstrated remarkable resilience despite regional conditions.
The agency emphasized that Qatar boasts one of the highest per capita income levels in the world alongside massive sovereign assets, forecasting that its net sovereign foreign assets will reach approximately 254.2 percent of GDP by the end of 2026. The country remains a net external creditor, backed by a high global governance score and a track record spanning more than 20 years without any debt restructuring.
QatarEnergy is currently executing the North Field East project to raise its current LNG production capacity from 77 million tons per annum (mtpa) to 110 mtpa, marking the first phase of the country's LNG expansion plan.
Meanwhile, the North Field South project, representing the second phase of the state's expansion plan, will increase LNG production capacity from 110 mtpa to 126 mtpa.
This comes as QatarEnergy announced in late March that the Golden Pass LNG project, a joint venture between QatarEnergy and ExxonMobil, achieved a major milestone toward the full commissioning of its production and export facilities with first LNG production from the first of three trains, boasting a total capacity of 18 million tons per annum.
In May, S&P Global Ratings and Moody's Ratings affirmed Qatar's sovereign credit ratings at AA and Aa2, respectively, with stable outlooks. Both agencies noted that the state's massive financial assets would help mitigate the fallout from the US-Israeli war on Iran. (QNA)
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