CAIRO – 7 July 2017: Moody’s Investors Service lowered its outlook of three Qatari government-related issuers (GRI) to negative from stable, the global rating agency said Thursday.
The negative outlook was prompted by the economic and financial risks of Qatar, which emerged after six Arab states, including Egypt, Saudi Arabia and the UAE, decided in early June to cut diplomatic ties with Doha.
Ras Laffan Liquefied Natural Gas Co. Ltd (RasGas II), Ras Gas 3 and Nakilat Inc. have kept their ratings at A1 and A2 respectively.
“In Moody's view, the likelihood of a prolonged period of uncertainty extending into 2018 has increased and a quick resolution of the conflict is unlikely over the next few months, which carries the risk that Qatar's sovereign credit fundamentals could be negatively affected,” Moody’s noted in the press release.
The move comes one day after Moody’s changed ratings of nine banks from stable to negative, affirming their long-term ratings.
Also, Qatar’s outlook was lowered from stable to negative on 4 July by Moody’s, affirming the long-term issue and senior unsecured debt ratings at Aa3. The debt rate reflects low credit risk.
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