S&P cut its rating of Qatar to AA-

Moscow. June 7. INTERFAX.RU – the International rating Agency S&P Global Ratings on Wednesday downgraded the sovereign rating of Qatar from AA to AA – and assigned a negative Outlook, which suggests that it can be reduced even in the case of higher political risk or when larger-than-expected growth of the national debt.

As reported, Saudi Arabia, Egypt, United Arab Emirates and Bahrain announced the severance of diplomatic relations with Qatar, accusing the authorities of supporting terrorist organizations. Later they were joined by a number of other Muslim countries.

According to experts S&P, such a development may increase vulnerability of external risks and Qatar to put pressure on the macroeconomic and budgetary indicators of the country. In particular, the current situation will negatively affect the profits of local companies due to the fact that they will be cut off from regional markets; the volume of investments will be reduced and investor confidence in the country will fall.