The Kuwaiti economy has exceptional levels

  • Kuwait, State of Kuwait
  • 13 February 2020

Moody's announced that the exceptional levels of Kuwait's high wealth and large oil reserves support the credit status of Kuwait ranked at (Aa2), which is supported by the strength of the economy at (a2) level, indicating that the institutional classification and governance strength in Kuwait is at (baa2) level, It is supported by the monetary policy framework led by the Central Bank of Kuwait, and strong supervision of the banking system.

According to the agency, the classification indicates the balance achieved by Kuwait against the deterioration in some aspects of the institutional framework and the effectiveness of the government due to the inability to implement the planned financial and economic reforms.

It showed that the classification of Kuwait's financial strength at (aaa) level is supported by the low levels of government debt, in addition to the assets of huge sovereign wealth funds accumulated from large financial surpluses before 2015.

According to Moody's, the classification of Kuwait's vulnerability to juvenile risk at the level of ba) reflects its exposure to regional geopolitical risks and the high level of dependence on the Strait of Hormuz, which is offset by a relatively neutral position in foreign policy.

Source (Kuwaiti newspaper Al-Rai, Edited)