Qatar continues to implement its large public infrastructure investment program. We view this as supportive of medium-term real economic growth, although it will contribute to a deterioration in fiscal and external balances, exacerbated by the large fall in oil prices. Nevertheless, we expect Qatar's fiscal and external buffers to remain strong. We are therefore affirming our 'AA/A-1+' ratings on Qatar. The stable outlook reflects our view that Qatar's economy will remain resilient, supported by strong macroeconomic fundamentals, although we anticipate continued institutional weaknesses and limited monetary flexibility over the next two years. On Sept. 18, 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.
