Kuwait’s Sovereign Ratings Affirmed
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Summary
Ref: KW1 9 CRA00- 2 2 nd August 2019
Kuwait’s Sov ereign Ratings Affirmed
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI ) , the international credit rating agency, today announced that it has affirmed the Long-Term Foreign C urrency Rating (LT FC R ) and Long-Term Local Currency Rating (LT LC R ) of Kuwait at ‘AA-’. The sovereign’s Short-Term Foreign Currency Rating (ST FC R ) and Short-Term Local Currency Rating (ST LC R ) have also been affirmed at ‘ A1+’. The Outlook for the ratings remains Stable.
RATING RATIONALE
Kuwait’s ratings are underpinned by strong macroeconomic fundamentals and a large net external creditor position. The ratings are also supported by a relatively low fiscal breakeven oil price, as well as high GDP per capita, a strong banking system , and low government debt. The ratings remain constrained by the country’s over- reliance on hydrocarbon s , institutional weaknesses , a…