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Moody's: GCC Rift Could Affect Qatar Credit Quality

2017-06-05 - 6:51 p

Bahrain Mirror - Reuters: Credit rating agency Moody's Investors Service is concerned that the rift between Qatar and other regional states could have an impact on Qatar's credit outlook, if trade and capital flows are disrupted, a senior Moody's analyst told Reuters on Monday.

"There's a high degree of uncertainty. There's not much clarity on what could resolve this spat between Qatar and other GCC countries," Mathias Angonin said in Dubai.

"The last tension ended with no credit implications," he said, referring to a row when Saudi Arabia, the United Arab Emirates and Bahrain withdrew their ambassadors from Qatar in March 2014.

"But this time around blocking sea, air and land (routes) shows a credit-negative escalation. And we're concerned that could have a credit impact if it disrupts trade and capital flows."

Late last month, Moody's downgraded Qatar's credit rating by one notch to Aa3 from Aa2 with a stable outlook, citing increasing external debt and uncertainty over the sustainability of the country's growth model over the next few years.

Arabic Version


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