Moody's Revises Outlook On Qatar's Sovereign Rating To Negative From Stable

Moody's Investors Service has revised the outlook on Qatar's sovereign rating to negative from stable, while affirming the issuer's senior unsecured rating at Aa3. The change is due to the economic and financial risks arising from the ongoing dispute between Qatar and a group of countries, including its fellow Gulf Cooperation Council (GCC) neighbors Bahrain (Ba2 negative), Saudi Arabia (A1 stable) and the United Arab Emirates (UAE, Aa2 stable)," Moody's said in a statement. The likelihood that the dispute will create a lengthy period of uncertainty extending into 2018 has increased and a resolution in the next few months is unlikely, said the statement. "Absent a swift resolution, economic activity will likely be hampered by the measures imposed so far," said Moody's. "While Qatar's hydrocarbon exports are not affected at this stage, there have been reports of disruptions to certain non-hydrocarbon exports and a forced shutdown of helium production. "