Qatar government bonds issued on Saturday have been rated as Aa2 inline with the state’s existing issuer rating, with a stable outlook, accoridng to a Moody’s report.
The unsecured senior bonds worth $3bn in total have been split into two tranches - a $2bn tranche maturing in 2014 and a $1bn tranche maturing in 2019, reported a press statement.
Proceeds from the bonds will be used for general funding purposes, including the provision of contingency funding to entities owned or controlled by the state, the government has said.
Qatar's Aa2 issuer ratings was supported the country's high level of prosperity, wide external current account surplus, strong balance sheet and the rapid expansion of gas exports that will significantly boost government revenues over the coming years, Moody’s said.
However, there were credit concerns including the steep rise in government expenditure, persistent inflation, a volatile regional geopolitical environment, weaker institutions than higher-rated countries, a relatively undiversified economy and the government's substantial domestic contingent liabilities, it added.
The last Moody's rating action on Qatar took place in July 2007 when it was upgraded to Aa2 from Aa3 to reflect the significant strengthening of the public and external finances.
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