Kuwait Sovereign Ratings Affirmed; Outlook Remains Stable
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Summary
Ref: KW 000 2 5 CRA00- 0 1 31 January 2025
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 ST LCR at ‘A1’. The Outlook on the ratings remains Stable.
Rating Rationale
The ratings are supported by very strong external finances, including very high current account surpluses, the substantial financial assets of the Future Generations Fund (FGF), and strong external debt capacity. The ratings also take into account the country’s large hydrocarbon reserves, very high GDP per capita, very low level of central government debt , and resilient banking sector.
The ratings continue to be constrained by moderately weak…