Moody's assigns stable rating to Qatar bonds
Singapore, December 6, 2011
Moody's Investors Service has assigned an Aa2 rating to the Qatari government's global bond offering consisting of three tranches: $2 bond due in January 2017, $2 bond due in January 2022, US$1 bond due in January 2042.
The Aa2 rating for Qatari government's new global bonds is based on the state of Qatar's Aa2 sovereign issuer rating, given that any direct government obligation whose repayment is handled by the Qatari Ministry of Economy and Finance receives a rating equivalent to that of the government.
Qatar's Aa2 foreign and local currency issuer ratings and foreign currency government ratings are supported by the government's successful management of its considerable hydrocarbon resource endowment, as reflected in very strong government financial and external payments positions.
In addition, Qatar's exceptionally high per capita income level -- one of the highest levels in the world at $88,222 in 2010, as estimated by the IMF in purchasing power parity terms -- has helped provide social stability and has insulated the country from the political turmoil seen in a number of Middle Eastern and north African countries in the past year.
Qatar's ratings are constrained by economic, institutional and political factors. Hydrocarbon production is likely to reach a plateau in 2012, and this is likely to lead to an increase over time in the country's vulnerability to potential price shocks in terms of their impact on economic growth, government finances and the balance of payments.
Although the government holds large assets, the precise scale of the country's net international investment position is not known, reflecting limitations in the coverage, quality and timeliness of official statistics. Moreover, Qatar faces geopolitical threats, which Moody's assesses as representing a 'moderate' level of event risk as part of the rating agency's sovereign methodology. – TradeArabia News Service