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The GCC (Gulf Co-operation Council) banks are likely to make greater use of private placements and syndicated loans if the Iran conflict persists, according to Fitch, a global credit rating agency. “Even if conditions stabilise and public markets reopen, we expect 2026 issuance to remain below 2025’s record level because of weaker credit growth and wider credit spreads,” it said in a latest report. Though the GCC bank liquidity conditions could deteriorate if the war is more prolonged or severe than its base case, Fitch however, said banks’ strong liquidity buffers and capital and liquidity support from the authorities could ease associated risks to credit profiles. “We expect private placements will be the main funding channel for the GCC banks this year if the conflict persists, but if geopolitical conditions improve banks will likely return to public markets,” according to the rating agency. The GCC banks’ dollar debt issuance, excluding certificates of deposit (CDs), was about $17.5bn in the first four months (4M) of 2026, up by around 20% year-on-year, or about $27bn including CDs. “This mainly reflects the strong issuance in January. Senior notes, mostly from the UAE and Qatari banks, were 41% of issuance, followed by 35% from CDs, mainly from Saudi banks, and 24% from AT1 (additional Tier 1) and Tier 2 instruments, also mostly from Saudi Arabia,” it said. Credit spreads widened across most of the capital structure after the conflict began, but have since tightened, it said, adding between February 28 and end-April, senior and Tier 2 spreads widened on average by 6bp (basis points), while AT1 spreads tightened by about 12bp. Fitch believes that the resilience of the GCC banks’ AT1 instrument pricing partly reflects a tendency towards buy-and-hold strategies among Shariah-compliant investors; almost 65% of the GCC bank AT1s are sukuk.It also reflects investor expectations around government support, strong regional capital buffers, and such instruments being likely to be called at the first reset date. The GCC banks’ year-to-date private placements are over $4.3bn, mostly in senior debt, it noted. Highlighting that banks’ access to other funding channels remains “strong”; it said the GCC banks have raised about $2.3bn in syndicated loans year-to-date, supported by strong regional liquidity and continued foreign investor appetite. Repo funding is another option, given banks’ large holdings of investment-grade securities, according to Fitch. 

The South Jersey Transportation Authority, which operates Atlantic City International Airport, is at risk of a credit downgrade after the collapse of Spirit Airlines sharply reduced traffic at the airport.Fitch Ratings on Monday said it had placed the authority’s senior and subordinate transportation system revenue bonds on Rating Watch Negative, citing the financial impact of Spirit’s exit. The airline accounted for about 76% of passenger traffic at Atlantic City International, leaving the airport without daily commercial service.Spirit Aviation Holdings Inc shut down earlier this month, after failing to secure emergency funding. The airline had struggled with mounting losses even before rising fuel prices tied to conflict in the Middle East added pressure.The collapse has rippled through the aviation industry in recent weeks, as competitors vie for market share. While carriers including Breeze Aviation Group, Inc, American Airlines Inc and Allegiant Travel Company are expected to help offset some of the service cuts at the Atlantic City airport, Fitch said the authority’s operating deficit could widen, weakening its financial position.The airport has two layers of debt, both with fixed interest rates and level repayment obligations of about $59mn a year through 2050, Fitch said.Fitch said a downgrade could follow if the airport fails to replace Spirit’s traffic, leading to larger deficits that pressure the authority’s cash flow. The Rating Watch Negative could be resolved to stable “if the authority provides structural or financial risk mitigation that supports its ability to maintain financial metrics consistent with the current rating level,” according to the rating report.However, the analysts noted that an “upward rating migration is unlikely” given the transit authority’s narrow revenue base and exposure to discretionary leisure traffic. 

Potential prospects for a significant rise in liquefied natural gas (LNG) production could mitigate the impact of the present geopolitical uncertainty on Qatar, which is expected to continue with its plans to expand LNG production capacity and show real growth of more than 10% in 2027, according to Fitch Ratings."Its strong balance sheet and credible prospects for a significant rise in LNG production mitigate the impact of the Iran war," Fitch said, affirming Qatar's long-term foreign-currency (LTFC) issuer default rating (IDR) at 'AA' with a "stable" outlook.The rating agency expects QatarEnergy to continue with its plans to expand LNG production capacity to 126mn tonnes per year (Mtpa) by end-2027 from 77Mtpa in 2025, and has announced further expansion to 142 Mtpa by end-2030."Our baseline assumes logistical challenges due to the war will delay the completion of the first phase of the North Field expansion, with the first new LNG trains only starting operations in 2027, compared with our previous expectations for late 2026," Fitch said.Fitch assumes the country's hydrocarbons bellwether and its foreign partners will continue to invest in expanding production after the current conflict.Expecting a small surplus this year, Fitch projects the general government budget surplus (including investment income) to narrow in 2026 to 0.3% of GDP (gross domestic product), from 2.8% in 2025, reflecting a mix of lower hydrocarbon revenue and higher spending in order to mitigate the impact of weak tourism, travel and risk perception on the non-oil economy.Although economic growth in 2026 is expected to fall on lower energy production and a significant slowdown in non-oil activity, in particular transport and tourism; Fitch said North Field projects would support both hydrocarbon and non-hydrocarbon growth over 2027-30, and "we project GDP growth of over 10% in 2027."Funding needs (general government budget, excluding the Qatar Investment Authority's estimated investment income) would reach 3.8% of GDP, according to the report."Under our baseline scenario, we project the general government budget surplus to rise in 2027, to 4.1% of GDP and over 7% by 2030 as LNG production increases," it said, projecting budget balance excluding investment income to be in surplus from 2027 and Qatar to transfer most its surpluses to the QIA for investment abroad.Expecting Qatar to cover its funding needs in 2026 through a mix of central bank overdrafts, domestic and global market sources and drawdown on the Ministry of Finance's deposits in the banking sector; it said, "We project debt to rise to 54% of GDP in 2026, above the forecast 'AA' median of 49.3%, before edging down due to strong nominal GDP growth."Estimating that sovereign net foreign assets (SNFA)/GDP rose to 227% in 2025 (sovereign wealth fund assets are not reported); it said in an adverse scenario of a much longer closure of the Strait of Hormuz or significant capital outflows, Qatar may call on some of the QIA's assets as a backstop.A large share of the QIA's assets can be liquidated at short notice. SNFA will rise due to fiscal surpluses until the end of the decade, although they remain vulnerable to financial market fluctuations."We project SNFA at 229% of GDP at end-2027, assuming no stock market appreciation. This is well above the 'AA' median of 45.3% for 2025," it added. 

QIIB, rated ‘A2’ by Moody’s with a stable outlook and ‘A’ by Fitch Ratings with a stable outlook, announced the successful issuance of a $500mn senior unsecured Sukuk with a five-year maturity, issued under 'Regulation S' as part of the bank’s existing $2bn Trust Certificate Issuance Programme. The transaction attracted strong demand from regional and international investors, with total orders exceeding $2bn — more than four times the issue size, QIIB said Saturday. This remarkable demand underscores investor confidence in QIIB and reflects the continued strength and resilience of Qatar’s economy, which continues to offer attractive investment opportunities across diverse sectors. The sukuk was priced at a profit rate of 85 basis points above the five-year US Treasury rate, with a final yield of 4.548% per year — one of the most competitive pricing levels achieved by Islamic financial institutions for similar issuances. Notably, allocations to investors outside the GCC exceeded 49% of the transaction. The issuance was arranged and marketed by a syndicate of leading global and regional banks acting as Joint Lead Managers and Joint Bookrunners, including: Al Rayan Investment LLC, ABC Bank, Citi, Dubai Islamic Bank, Dukhan Bank, Emirates NBD Capital, HSBC, Mashreq, QNB Capital, Standard Chartered Bank, ICBC, and The First Investor. Ahead of the issuance, QIIB conducted a global investor call, followed by a series of virtual meetings and in-person investor meetings in London recently. Commenting on the successful issuance, QIIB Chief Executive Officer, Dr Abdulbasit Ahmad al-Shaibei, stated: **media[379021]** “The successful completion of this sukuk issuance represents a significant milestone that reaffirms QIIB’s strong financial position and the continued confidence of global investors in both the bank and the Qatari economy, which remains robust and highly attractive to investors. The issuance received strong demand from a wide range of investors across different regions, reflecting QIIB’s standing as a leading Islamic financial institution.” He noted, “The competitive pricing and strong order book demonstrate QIIB’s sustained appeal in international capital markets, supported by our solid credit ratings, high operational efficiency, and prudent risk management. This issuance further contributes to diversifying the bank’s funding base and supports the growth plans approved by our Board of Directors.” Al-Shaibei also highlighted QIIB’s consistent track record in the sukuk market, noting: “QIIB has a solid and proven history in sukuk issuances. We previously issued Additional Tier 1 Sukuk and other sukuk that were significantly oversubscribed by investors worldwide. We were also the first Qatari institution to issue a 'Sustainable Sukuk', which attracted exceptional interest from sustainability-focused funds — enhancing our global profile and diversifying our investor base.” He concluded: “We will continue to strengthen the bank’s portfolio and expand our presence in international capital markets, in line with QIIB’s strategic direction and Qatar National Vision 2030.”