Kuwait-Mubasher: Capital Intelligence (CI) affirmed the foreign currency and local currency ratings of Kuwait’s at “AA-” long-term and “A1+” short term, with “Stable” outlook, according to a recent statement.
Kuwait’s ratings are underpinned by strong macroeconomic fundamentals and a large net external creditor position, which reflects the government’s prudent management of the country’s substantial oil wealth.
The ratings are also supported by the comparatively high level of GDP per capita of around $30,000 in 2015.
Backed by renewed capital spending and the resumption of infrastructure projects, the country's economy is expected to expand by 1.2% in the fiscal year ending March 2016, and by 2.5% and 2.7% in the fiscal years 2017 and 2018, respectively.
The steep decline in oil prices adversely affected the public finances, the statement said, adding that the central government budget is expected to register a small surplus of 1.3% of GDP in FY16, compared to a surplus of 26.3% in FY15.
Central government debt remains very low at about 9.9% of GDP in FY16 and is issued for monetary policy purposes rather than to finance government spending.
Kuwait’s current account surplus is expected to decline below 10% of GDP in FY16 and over the intermediate-term, reflecting low hydrocarbon prices.
