Kuwait – Mubasher: Standard and Poor’s (S&P) said the stable outlook for Kuwait reflects its expectation that the country’s fiscal and external positions will remain strong, backed by a significant stock of financial assets and significant oil reserves.
“We expect these strengths to offset risks related to the current volatile oil price, Kuwait's undiversified oil economy, and what we assess as an unpredictable political environment, in addition to geopolitical tensions in the region,” said the ratings agency.
In August, S&P affirmed its ‘AA/A-1+’ rating on Kuwait, with Stable outlook.
S&P said it could lower the ratings if a continued fall in oil prices were to undermine Kuwait's wealth levels, if Kuwait's domestic political stability were to significantly deteriorate, or if geopolitical risks were to escalate.
“We could raise the ratings if political reforms were to enhance institutional effectiveness and improve long-term economic diversification, if geopolitical risks fade significantly, and prospects for the oil sector improve,” stated the agency.
