LONDON, June 8 Qatari sovereign dollar bonds
extended losses on Thursday to approach three-month lows and the
cost of insuring exposure to the kingdom's debt rose to the
highest level since mid-November, after a credit ratings
The Eurobond maturing 2026 fell 0.7 cents,
according to Tradeweb data, to 97.7 cents in the dollar, the
lowest level since mid-March.
The 2027 dollar-denominated bond of Qatar's Ras Laffan
Liquefied Natural Gas Company fell 1.5 cents to
111.5 cents in the dollar.
Data from IHS Markit showed five-year credit default swaps
(CDS) for Qatar widened out 3 basis points (bps) from
Wednesday's close to 92 bps, a seven-month high.
S&P Global cut its rating by one notch to AA- from AA and
put it on CreditWatch with negative implications, meaning there
is a significant chance of a further downgrade.
The move came after several Arab countries including Saudi
Arabia and United Arab Emirates severed diplomatic relations
with Gulf Cooperation Council (GCC) member Qatar while also
suspending air, land and sea transport and imposing travel bans.
Five year CDS for Saudi Arabia also rose 3 bps from
Wednesday's close to 100 bps, the highest since end-March.
(Reporting by Claire Milhench; editing by Sujata Rao)