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Tribune News Network
Doha
Fitch Ratings has upgraded Doha Bank's outlook from 'negative' to 'stable' and affirmed the long-term issuer default ratings (IDR) at 'A', the bank announced in a press statement on Saturday.
The upgrade follows the revision of the Qatari sovereign's outlook to 'stable' from 'negative' and affirmation of the country's long-term IDR at 'AA-'.
It also reflects Fitch's view that Qatar has successfully managed the fallout from last year's rupture of trade, financial and diplomatic relations with the Quartet consisting of the UAE, Saudi Arabia, Bahrain and Egypt.
Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding, the Fitch report said.
"The fiscal deficit has narrowed sharply and we expect it to turn into a surplus in 2019. The economy has reconfigured its supply chains and continues to grow at a robust pace. There has been no escalation of measures against Qatar,"the report added.
Doha Bank CEO R Seetharaman, said,"Fitch ratings recognises support of Qatari authorities for the banking system in the country. The government has demonstrated a strong commitment to its banks and key public sector companies, which has been reaffirmed during the crisis."
He added,"The country has shown buoyancy in the times of crisis and this upgrade was a testament of its fundamental strength.
"In response to the economic blockade, Qatar has emerged strong and has brought various reforms to transform itself into a self-reliant economy. Some of these reforms include landmark residency bill, relaxing entry visa requirements for citizens of 80 countries and enhancing food security.
"Qatar will also raise LNG production by 30 percent to 100mtpa within five to seven years after lifting a moratorium on gas development earlier in 2017. Qatar has been ranked 25th in 'the Global Competitiveness Report 2017-18".
