The COVID-19 pandemic and low hydrocarbon prices will cause a sharp contraction of growth and push fiscal and external flows into deficit. Nevertheless, we believe Qatar's government and external balance sheets provide sufficient buffers to withstand these shocks. We are therefore affirming our 'AA-/A-1+' foreign and local currency ratings on the country. The outlook is stable. On May 8, 2020, S&P Global Ratings affirmed its 'AA-/A-1+' long- and short-term foreign and local currency sovereign credit ratings on Qatar. The outlook is stable. The stable outlook indicates our view of broadly balanced risks to the ratings. Despite a sharp economic contraction and low hydrocarbon prices, we don't expect the government's fiscal and external stock positions will materially deteriorate beyond our expectations.
