Moody’s: Qatar credit quality to decline if GCC tensions persist - RTRS

The US-based ratings agency, Moody’s Investor Service, warned on Thursday, Qatar’s credit ratings could be downgraded if tensions with its Gulf neighbors continue for much longer. Deepening rift with its Arab counterparts is expected to raise Qatar’s debt ratio and hurting banks' liquidity.

Meanwhile, S&P Global rating agency cut its rating on Qatar on Wednesday to AA- and put the rating on CreditWatch with negative implications

Key Quotes via Reuters:

"A prolonged or deepening rift between Qatar and its GCC neighbors would potentially have a more marked financial effect and increase funding costs for the sovereign and other Qatari entities," 

"An escalation could include restrictions on capital flows, which would be negative for Qatari banks' liquidity and funding."