Kuwait’s Sovereign Ratings Lowered; Outlook Revised to Stable
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Summary
Ref: KW 2 1 CRA00- 0 2 13 August 2021
Kuwait’s Sovereign Ratings Lowered; Outlook Revised to Stable
Rating Action
Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has lowered Kuwait’s Long-Term Foreign C urrency Rating (LT FC R ) and Long-Term Local Currency Rating (LT LC R ) to ‘A+’ from ‘AA -’. At the same time , CI Ratings has lowered t he sovereign’s S hort- T erm F oreign Currency Rating (ST F CR ) and Short-Term Local Currency Rating ( S T LCR ) to ‘A1’ from ‘A1+’. The Outlook on the ratings has been revised to Stable from Negative.
Rating Rationale
The downgrade of the ratings reflects Kuwait’s heightened re financing and liquidity risks in the face of the political impasse between the government and the parliament over the debt law and fiscal reforms. This impasse has so far prevented the government from gaining access to the substantial stock of assets accumulated in the…