Kuwait’s Sovereign Ratings Affirmed, with a Stable Outlook
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Summary
Ref: KW1 9 CRA00- 1 8 th February 2019
Kuwait’s Sovereign Ratings Affirmed, with a Stable Outlook
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI ) , the international credit rating agency, today announced that it has affirmed Kuwait’s Long-Term Foreign C urrency (LT FC) and Long-Term Local Currency (LT LC) Issuer Ratings at ‘AA-’. The sovereign’s Short-Term Foreign Currency (ST FC) and Short-Term Local Currency (ST LC) R atings 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…