Qatar 'AA/A-1+' Ratings Affirmed On Medium-Term Growth Expectations; Outlook Stable

OVERVIEW We project real economic growth in Qatar to average about 4% annually in 2015-2018, sustained by the government?s $220 billion investment program. We are therefore affirming our 'AA/A-1+' ratings on Qatar. The stable outlook reflects our view that Qatar's high economic wealth and strong external and fiscal positions will balance its institutional shortcomings and limited monetary flexibility over the next two years. RATING ACTION On March 27, 2015, Standard&Poor's Ratings Services affirmed its 'AA' long-term and 'A-1+' short-term foreign and local currency sovereign credit ratings on the State of Qatar. The outlook is stable. We also affirmed the 'AA' long-term issue ratings on the bonds issued by Qatari Diar Finance Q.S.C. and SoQ Sukuk A Q.S.C. RATIONALE

...OVERVIEW We project real economic growth in Qatar to average about 4% annually in 2015- + 2018, sustained by the government's $220 billion investment program. We are therefore affirming our '##/A-1+' ratings on Qatar. + The stable outlook reflects our view that Qatar's high economic wealth and strong + external and fiscal positions will balance its institutional shortcomings and limited monetary flexibility over the next two years. RATING ACTION On March 27, 2015, Standard & Poor's Ratings Services affirmed its '##' long-term and 'A-1+' short-term foreign and local currency sovereign credit ratings on the State of Qatar. The outlook is stable. We also affirmed the '##' long-term issue ratings on the bonds issued by Qatari Diar Finance Q.S.C. and SoQ Sukuk A Q.S.C. RATIONALE Qatar is a wealthy economy; we estimate its GDP per capita at $78,000 in 2015. The hydrocarbons sector creates about 55% of Qatar's GDP, 90% of government revenues (oil and gas taxes and royalties, plus dividends from...

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