The US-Iran war and effective closure of the Strait of Hormuz have disrupted economic activity, but the negative rating actions for Middle East issuers for the March-April period were limited to outlook revisions and placements on the Rating Watch, according to a report from Fitch.
Qatari banks had strong capital and liquidity buffers, as well as provision coverage, before the Iran conflict, and asset-quality metrics were sound. But the country's banking sector operating environment could weaken under adverse scenarios for the Iran conflict, warned a top Fitch official.
