Kuwait Sovereign Ratings Affirmed; Outlook Remains Stable
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Summary
Ref: KW 2 4 CRA00- 0 1 2 August 2024
Kuwait Sovereign 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 the substantial financial assets of Kuwait’s Future Generations Fund (FGF), the country’s very large net external creditor position, the very low level of government debt , and large hydrocarbon reserves. Although the 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 exceed USD80 0 bn (equivalent to around 3.6…