(MENAFN) Global credit rating agency Fitch Ratings has revised the outlook on Qatar's Long-Term Foreign-Currency Issuer Default Rating (IDR) to positive from stable and affirmed the IDR at 'AA-'. The revision of the outlook reflects Fitch's expectation that Qatar's debt to GDP will remain in line with or below the 'AA' peer median. The expansion of the North Field, which will increase the country's LNG export capacity, is also expected to support Qatar's credit rating.

According to Fitch's report, Qatar's 'AA-' ratings are supported by large sovereign net foreign assets, one of the world's highest ratios of GDP per capita, and a flexible public finance structure. The report also forecasts Qatar's general government (GG) budget surplus at about 10 percent of GDP in 2023, compared to 13 percent in 2022.

Fitch notes that Qatar Central Bank's measures have contributed to reducing banks' dependence on foreign financing. The bank's efforts have helped reduce foreign financing from USD197 billion in 2021 to USD186 billion in 2022, thus improving the country's financial stability.

Qatar's positive outlook reflects the country's strong economic performance, supported by a stable political environment, robust fiscal position, and large foreign reserves. The expansion of the North Field and the country's efforts to reduce its dependence on foreign financing are expected to contribute to further strengthening of Qatar's creditworthiness.

Fitch's revision of Qatar's outlook to positive indicates that the country is on a path to further improvement, and its credit rating is expected to remain stable or improve in the near future. This positive outlook is a testament to the country's strong economic fundamentals and its commitment to maintaining a stable and sustainable financial position.

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