Kuwait’s Sovereign Ratings Affirmed; Outlook Remains Stable
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Summary
Ref: KW 2 2 CRA00- 0 2 12 August 2022
Kuwait’s 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 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 ample financial assets in the Future Generations Fund (FGF) and the country’s correspondingly very large net external creditor position, as well as by the very low level of government debt and high level of hydrocarbon reserves. The actual level of assets in the FGF , which is managed by the Kuwait Investment Authority (KIA) , is uncertain as…