The ratings on the State of Qatar are supported by prudent and sustainable fiscal policy that results in strong budgetary outturns, substantial external liquidity, healthy economic prospects driven largely by the gas industry, high per capita income, and the development of domestic political institutions. The ratings remain constrained primarily by the geopolitical risks facing sovereigns in the Gulf region, which are higher than for other 'AA' rated sovereigns. The ratings on Qatar are supported by budget surpluses and low government debt, substantial external liquidity, strong economic prospects, and high per capita income. The ratings remain constrained by relatively high public sector external debt, greater geopolitical risks, and less developed political institutions than most other 'AA' rated sovereigns. Standard&Poor's
