ABU DHABI 6 July 2017: Moody’s has downgraded the Government of Qatar’s credit outlook to negative on concern a quick resolution of the Qatari crisis is unlikely, but kept its long-term issuer rating at Aa3, according to a statement issued by the rating agency.
Except for a “swift resolution,” economic activity is likely to be stymied after countries, including the UAE, Kingdom of Saudi Arabia, Kingdom of Bahrain and Egypt cut air, land and sea links with Qatar, Moody’s said, reported Wam.
“The likelihood of a prolonged period of uncertainty extending into 2018 has increased and a quick resolution of the dispute is unlikely over the next few months, which carries the risk that Qatar’s sovereign credit fundamentals could be negatively affected,” the Moody’s statement reads.
Trade limitations imposed by the Saudi-led coalition has put pressure on Qatar’s assets and finances. Fitch Ratings has recently stated that it was also considering a cut of Qatar’s credit outlook.
By Rajive Singh