The Iran war is testing the resilience of Gulf energy producers, and is starting to have an impact on their credit ratings. Fitch warned on Monday that it could downgrade Qatar’s rating, citing the risk of further damage to the country’s gas facilities while adding that, even if the war ended soon, the security environment may have “permanently deteriorated.”
QatarEnergy shuttered its operations, and Iranian missile strikes have taken a sixth of its LNG capacity out of commission for years. Despite that, Moody’s has affirmed the company’s Aa2 credit rating, pointing to its vast gas reserves and strong cash generation. One other bright note: Its Golden Pass LNG facility in Texas has started production.
Oman’s oil and gas exports do not pass through the Strait of Hormuz, prompting a surge in the price of Omani crude. However, in a note affirming the country’s BBB- credit rating on Friday, S&P Global cut its GDP growth forecast for Oman this year to 1.4%, down from the 2.2% projected before the war, as uncertainty weighs on tourism, private investment, and trade flows.