Mubasher: Standard and Poor's (S&P) has affirmed Kuwait's (AA/A-1+) long and short-term foreign and local currency sovereign credit ratings, with a stable outlook.
S&P expects Kuwait to continue to hold extremely large government and external net asset positions, which would allow authorities to gradually implement reforms, noting that the stable outlook reflects expectations that Kuwait's public and external balance sheets would remain strong over the next two years, backed by a significant stock of financial assets.
The ratings agency said that it expects these strengths to offset risks related to volatile oil prices, Kuwait's undiversified economy, and rising geopolitical tensions in the region, especially as Kuwait’s economy continue to be supported by sovereign's high levels of accumulated fiscal and external buffers.
