Kuwait – Sovereign Ratings Affirmed; Outlook Remains Stable Rating Action
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Summary
Ref: KW 2 3 CRA00- 0 1 1 7 February 2023
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 Long-Term Local Currency Rating (LT LC R ) at ‘A+’ . At the same time , CI Ratings has affirmed t he sovereign’s S hort- T erm F oreign Currency Rating (ST F CR ) and Short-Term Local Currency Rating ( S T LCR ) at ‘A1’. The Outlook on the ratings has been affirmed at Stable.
Rating Rationale
The ratings are supported by the substantial financial assets in the Future Generations Fund (FGF) and Kuwait’s very large net external creditor position . The ratings are also supported by the very low level of government debt and the country’s large hydrocarbon reserves. The actual level of assets in the FGF , which is managed by the Kuwait Investment Authority (KIA) ,…