Fitch affirms Qatar at 'AA', lifts rating watch on easing LNG risks

Global ratings agency Fitch has affirmed Qatar's sovereign credit rating at 'AA' and removed the 'Rating Watch Negative' tag it had placed on the country, signalling reduced near-term risks to its liquefied natural gas (LNG) facilities since March.

The agency, however, retained a 'negative' outlook on the rating, pointing to continued uncertainty around the disruption of LNG shipments through the Strait of Hormuz — a critical chokepoint for Qatari energy exports.

Fitch noted that the full impact of the ongoing conflict on Qatar's credit profile would take longer to assess. The affirmation comes months after the agency had flagged the possibility of a downgrade amid intensifying concerns over regional security and the economic fallout from the war involving Iran.

Qatar, one of the world's largest LNG exporters, has faced repeated disruptions to its export routes and shortages linked to damage at energy facilities. According to estimates, the country has lost roughly $24 billion in gas sales since the conflict began six months ago.

The broader economic picture remains strained. Forecasts suggest Qatar's gross domestic product could contract by 8.1% this year — a sharper decline than the 6% projected earlier — placing it among the economies with the steepest downgrades.

Other major rating agencies, including S&P and Moody's, have also affirmed Qatar's ratings this year, citing the country's substantial fiscal buffers as a cushion against the economic shock from the regional war.