The Qatari government has strengthened its fiscal and external balance sheets, with strong growth prospects spurred by new large liquefied natural gas (LNG) projects in 2010-2012. We are raising the long-term ratings on the State of Qatar to 'AA' from 'AA-', and affirming the 'A-1+' short-term ratings. The stable outlook balances Qatar's strong fiscal and external positions against monetary and banking sector challenges and political risks, both geopolitical and as related to developing domestic institutions. On July 5, 2010, Standard&Poor's Ratings Services raised its long-term sovereign ratings on the State of Qatar to 'AA' from 'AA-'. At the same time, the 'A-1+' short-term ratings were affirmed. The outlook is stable. The transfer and convertibility (T&C) risk assessment remains
