Moody's assigns A (P)A1 rating to Qatar Petroleum's proposed noted due 2011; outlook stable

Moody's Investors Service today assigned a rating of (P)A1, stable outlook, to Qatar Petroleum's (QP) proposed Notes due May 2011.




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The final confirmation of the rating is subject to signing of the offering circular.

Moody's last rating action on QP was on 7 April 2006, when the rating agency assigned for the first time long term foreign and local currency
ratings of A1 to the company.

The (P)A1 rating reflects the fact that the Notes are unsecured and unsubordinated obligations of QP and will rank pari passu with all present and future unsecured obligations of the company. QP's A1 / stable ratings reflect the application of Moody's rating methodology for government-related issuers (GRIs). In accordance with this methodology, the rating of QP is based on a combination of the following factors:

(1) a baseline credit assessment of '3' (on a scale of 1 to 6, where 1 represents lowest credit risk);

(2) the A1 local currency rating of Qatar;

(3) high dependence, reflecting a high degree of integration with the government; and

(4) high probability of government support in cases of financial distress, reflecting the vital strategic importance as the government arm for implementing the country's energy policy.

Qatar Petroleum, headquartered in Doha, Qatar, is the national oil & gas company of Qatar and wholly owned by the state. At year-end 2004, QP had total crude and condensate reserves of 26.9 billion barrels of oil equivalent (boe) and total natural gas reserves of 905 trillion standard cubic feet (tscf), predominantly located in its vast offshore North Field.




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London
Stuart Lawton
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London
Philipp L. Lotter
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Corporate Finance
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

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Anne-Birte Stensgaard Posted by Anne-Birte Stensgaard, Senior News Editor
Wednesday, May 10 - 2006 at 09:11 UAE local time (GMT+4)

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