Kuwait’s Sovereign Ratings Affirmed with a Stable Outlook

Ref: KW 20 CRA00- 0 2 2 4 Ju l y 2020

Kuwait’s Sovereign Ratings Affirmed with a Stable Outlook

RATING ACTION

Capital Intelligence Ratings (CI Ratings or CI ) 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 been affirmed at ‘ A1+’. The Outlook for the ratings remains Stable.

RATING RATIONALE

The ratings are supported by the country’s large oil reserves, substantial external assets, continued current account surpluses, and limited government indebtedness. The ratings are also supported by a relatively low fiscal breakeven oil price (the second lowest in the GCC after Qatar), a high GDP per capita, as well as a strong banking system. The ratings are constrained by the country’s reliance on hydrocarbons…