The ratings on the State of Qatar primarily reflect the country's very strong economic prospects--driven largely by the gas industry--combined with continuous prudence in fiscal policy and the ongoing improvement in domestic political institutions. Standard&Poor's expects Qatar's strong fiscal performance to continue. Assuming an average Brent crude price of about $52 per barrel, a fiscal surplus of about 17% of GDP is projected in 2005-2006. General government debt is expected to continue to decline to 26% of GDP at fiscal year-end 2005-2006 (March 31, 2006). Taking into account the government's deposits would reduce its debt burden to a projected 2.6% of GDP in 2005-2006. The ratings on Qatar also benefit from a strong external liquidity position, with current
