Moody's Investors Service has assigned Kuwait a sovereign credit rating of "A1" with a stable outlook.
According to the agency, Kuwait's credit rating is based on its economic strength, as it has great financial wealth with a very low level of government debt, and it is expected that the public budget will remain exceptionally strong for the foreseeable future. Noting that this will contribute to the re-accumulation of the financial resources of the General Reserve Fund in light of the current environment of high oil prices and production quantities within the framework of the “OPEC +” agreement, and this will lead to postponing government liquidity risks for at least two or three years to come.
According to the agency, the size of the sovereign wealth fund's liquid assets far exceeded the size of GDP at the end of 2021, and government debts decreased to about 6 percent of GDP at the end of the fiscal year 21/2022.
In terms of developments in the general budget, the agency expects to achieve a fiscal surplus ranging between 7 percent to 8 percent and another surplus ranging between 2 to 3 percent of GDP in the fiscal years 22/2023 and 23/2024, respectively. Driven by the sharp increase in oil prices this year due to the war in Ukraine, coupled with the rise in oil production under the "OPEC +" agreement.
Source (Al-Rai Kuwaiti Newspaper, Edited)
