Three bonds were issued for $2 billion (coupon 3.125 percent, maturing Jan. 20, 2017); $2 billion (coupon 4.500 percent, maturing Jan. 20, 2022); and $1 billion (coupon 5.750 percent, maturing 2042).

“We understand the net proceeds from the issue of the bonds will be used for general funding purposes, including infrastructure projects, expansion of the hydrocarbon sector, and to provide funding for state-owned enterprises,” a statement said.  

It added: “The ratings on Qatar reflect our view of the government's strong reported

fiscal and external balance sheets. They also reflect the strong growth prospects spurred by newly completed large liquefied natural gas (LNG) projects. The ratings are constrained by still-developing public institutions and limited disclosure, particularly with respect to government assets and their returns.”

It said Qatar had accumulated considerable foreign assets over the past decade, a result of Qatar's high resource endowment, improving terms of trade, and its good long-term investment planning.

“We believe the general government net asset position will be around 66 percent of GDP at year-end 2011. In our view, government debt issuance is not required to finance a deficit, but is used for investment purposes and to aid in the development of domestic capital markets,” S&P said.

The statement said: “However, structural weaknesses and challenges remain:

— First, the country's public institutions are in the early stages of development compared with most 'AA' rated sovereigns;

— Second, we view monetary policy flexibility as limited, given the fixed exchange rate with the US dollar;

— Third, data quality lacks transparency by international standards; in particular, the government neither discloses all fiscal assets nor reports their returns; and

— Fourth, like other sovereigns in the region, Qatar is exposed to geopolitical risk, such as a potential escalation of tensions between the West and Iran, with which Qatar shares the large North Field gas reservoir.

S&P added: “The stable outlook on Qatar's ratings balances our view of its strong fiscal and external positions against underdeveloped domestic institutions and geopolitical risks. Faster maturation of domestic institutions or an easing of regional tensions could prompt an upgrade. Conversely, the ratings could be lowered if regional geopolitical risks were to escalate, threatening Qatar's political and economic stability, or if we were to materially revise our estimates for Qatar's fiscal and external asset positions.”