Moody's Agency has given Kuwait a credit rating of A2, which is higher than the initial BAA3 rating, to reflect the very high levels of per capita income in Kuwait, as well as its vast oil wealth.
According to the agency, Kuwait has the largest proportion of oil reserves among the Gulf Cooperation Council countries, which are sufficient to last about 90 years at the current rate of production, in addition to the relatively low production costs, allowing the country's hydrocarbon resources to be the long-term engine of income and wealth.
The agency indicated that the application of value-added tax and indirect taxes will lead to an expansion of the government revenue base and a structural improvement in the financial balance, in light of Kuwait's huge stock of sovereign assets in the Future Generations Fund, which far exceeds the GDP and government debt.
Moody’s noted that the obstacles that Kuwait faces in resolving the liquidity problem are mainly political, and not related to external factors.
It also indicated that Kuwait's credit position is reinforced by the exceptional wealth it enjoys, as the assets of sovereign wealth funds significantly exceed the GDP and government debt, in addition to the huge oil and gas reserves, and the very high levels of income.
Source (Al-Rai Newspaper-Kuwait, Edited)
