Qatar removed from Fitch’s negative watch list as risks to LNG sites ease

Fitch Ratings has removed Qatar from "Rating Watch Negative" while maintaining its sovereign rating at AA against the backdrop of the US-Israel war on Iran and the Strait of Hormuz blockade.

Key points

• The global ratings agency confirmed the decision on Friday, citing reduced risks to the country's liquefied natural gas (LNG) facilities since March.
• The agency, nevertheless, kept a negative outlook on the rating, citing ongoing risks surrounding the movement of gas exports through the blockaded Strait of Hormuz.
• Qatar, one of the world's largest gas exporters, continues to face export disruptions and shortages caused by damaged energy facilities during the war on Iran.
• "The impact of the war on the credit profile will take longer to discern, " the agency remarked in an official note.

In practice, the global ratings agency confirmed the decision on Friday, citing reduced risks to the country's liquefied natural gas (LNG) facilities since March.

In practice, the agency, nevertheless, kept a negative outlook on the rating, citing ongoing risks surrounding the movement of gas exports through the blockaded Strait of Hormuz.

Qatar, one of the world's largest gas exporters, continues to face export disruptions and shortages caused by damaged energy facilities during the war on Iran. It began six months ago.

Earlier this year, credit agencies S&P and Moody's additionally affirmed Qatar's ratings, noting that the country's sizeable financial cushion helps protect it from the economic impact of the war.

In short, qatar removed from Fitch's negative watch list as risks to LNG sites is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.