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Posted On: 9 April 2009 11:32 am
Updated On: 12 November 2020 02:09 pm

State of Qatar USD3 billion global bond issue assigned 'AA-' rating

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Standard & Poor's Ratings Services said today that it has assigned its 'AA-' rating to the $3 billion global bond issue by the State of Qatar (AA-/Stable/A-1+). The senior fixed rate notes have two tranches: a five-year $2 billion bond maturing April 9, 2014, and a 10-year $1 billion bond maturing April 9, 2019. The rating is in line with Qatar's 'AA-' long-term foreign currency issuer credit rating. The proceeds of the bonds will contribute to the general financing of the State of Qatar's budget in 2009, including providing funding for entities that it owns or controls. "The ratings on Qatar are supported primarily by strong fiscal and external balance-sheets, healthy economic prospects driven largely by the gas industry, and high per capita income," said Standard & Poor's credit analyst Véronique Paillat-Chayriguès. The ratings remain constrained by the geopolitical risks facing sovereigns in the Gulf region, and capacity and institutional constraints which are higher than for other 'AA' rated sovereigns. "A reduction in regional geopolitical risk would be important in raising the rating in the future," said Ms. Paillat-Chayriguès. "Conversely, a worsening of political and event risks, or a significant and sustained erosion of the government's asset position, would put the government's creditworthiness under pressure."