Mubasher: Fitch Ratings on Thursday affirmed the Kuwaiti Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AA', with a stable outlook.
The affirmed rating reflects the GCC country’s strong fiscal and external metrics, according to a report released by Fitch.
However, the effects of these strengths are limited by the country’s dependence on oil, weak indicators of governance, and the business environment, along with the geopolitical risks.
“The foreign assets of the Kuwait Investment Authority (KIA) reached $561 billion or 394% of GDP in 2018, accounting for the bulk of Kuwait's sovereign net foreign asset position of 479% of GDP (the highest of any Fitch-rated sovereign),” the report found.
Fitch expected that Kuwait would achieve a KWD 3.3 billion surplus in the fiscal year 2018/2019, boosted on oil revenue.
Read: Kuwait’s governor to OPEC stated that Kuwait would support an extension of oil cuts led by OPEC beyond June.
“General government debt fell to KWD 7.4 billion at the end of FY18/19, from KWD 8.6 billion in the preceding fiscal year. Kuwait's existing eurobonds mature in 2022 and 2027," the international rating agency's data showed.
Earlier in April, the Arab Monetary Fund (AMF) reported that the economic growth rate of Kuwait was expected to reach 3% during 2019, and 3.3% in 2020.
