Qatar debt burden ‘still low’ on global comparison, says BMI

Qatar debt burden ‘still low’ on global comparison, says BMI:

"Qatar’s debt burden is still low on a global comparison, amounting to 45.9% of GDP as at end-2016, allowing the country space its borrowing without risking deterioration in its sovereign profile, according to BMI Research. Qatar’s “economic fundamentals remain sound” as illustrated by its high ratings across all three major ratings agencies, the Fitch Group company said and BMI expects investor interest in the country’s debt issuances.  Rising hydrocarbon revenues will cause Qatar’s budget deficit to narrow in the quarters ahead, despite the upward pressure on spending caused by the ongoing diplomatic crisis in the region. Although Doha will see borrowing costs rise as a result of heightened political uncertainty, it faces limited risk of any credit event, as its debt burden remains low and its ability to defend the riyal’s dollar peg is retained, BMI said. "



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