Doha, Qatar – S&P upgraded Qatar’s long-term sovereign credit rating from “AA-” to “AA” on Friday, citing improvements in the country’s budgetary situation.
S&P maintained its outlook for Qatar at “stable”.
Qatar is hosting FIFA World Cup this month.
“Qatar’s debt interest costs as a share of government revenue have fallen, and we expect them to remain low because the government is repaying maturing debt,” the agency said in a statement, quoted by Reuters.
According to a statement by Emir Sheikh Tamim bin Hamad al-Thani last month, high oil prices have so far resulted in a 47.3 billion Qatari riyal budget surplus.
S&P predicts that increased oil prices would lead to significant fiscal surpluses in 2022–2023.
One of the biggest natural gas exporters in the world, Qatar has reaped significant rewards from the sharp rise in oil and gas prices.
The North Field Expansion, which is a component of the largest gas field in the world that Qatar and Iran jointly own, is also expected to significantly improve the cash stream for the Qatari government, according to S&P.