Kuwait Sovereign Ratings Affirmed; Outlook Remains Stable

Ref: KW 2 3 CRA00- 0 2 4 August 2023

Kuwait Sov ereign Ratings Affirmed ; Outlook Remains Stable

Rating Action

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed Kuwait’s Long-Term Foreign C urrency Rating (LT FC R ) and L T Local Currency Rating (LT LC R ) at ‘A+’ . At the same time , CI Ratings has affirmed t he sovereign’s S hort- T erm (ST) FCR and S T LCR at ‘A1’. The Outlook on the ratings remains Stable.

Rating Rationale

The ratings are supported by Kuwait’s substantial financial assets in the Future Generations Fund (FGF) , the very large net external creditor position , as well as the very low level of government debt and the country’s large hydrocarbon reserves. Although t he actual level of assets in the FGF , which is managed by the Kuwait Investment Authority (KIA) , is uncertain as public disclosure is prohibited by law , the latest estimates stand at USD 803 bn (…