Moody's downgrades Qatar’s rating to Aa3 from Aa2

CAIRO – 28 May 2017: Moody's Investors Service has downgraded Qatar’s long-term issuer and senior unsecured debt ratings to Aa3 from Aa2, the global rating agency said in a late Friday report.

“The key drivers for the rating downgrade are a weakening of Qatar's external position and uncertainty over the sustainability of the country's growth model beyond the next few years,” read the report.

Moody’s also decreased the country’s long-term foreign-currency bond and deposit ceiling to Aa3 from Aa2, while the short-term foreign-currency bond was kept at P – 1, according to the report.

Meanwhile, the rating agency changed Qatar’s outlook from negative to stable, saying the fiscal and economic reforms, as well as the sizable reserve buffers in the country will “shield Qatar's credit profile from deteriorating further and remain consistent with a Aa3 rating.”