Fitch Ratings: Coronavirus intensifies pressure on Qatari banks

The spread of the corona virus will pressure Qatari banks' asset quality and funding volatility could recur. As Fitch does not expect any changes in the Qatari authorities' ability to provide timely support all Qatari banks have a Stable outlook. The consequences of the coronavirus and lower hydrocarbon revenues will weaken government capital spending, which will in turn affect the operating environment. Fitch now forecasts Qatar's real GDP growth at minus 2% in 2020, after an estimated 0.6% positive growth in 2019. Qatari banks have adequate capital buffers but an increase in problem loans could erode these buffers quickly.