“Moody's” Investors Service revealed that Kuwait's credit position is solid as it is supported by very large financial reserves along with huge oil and gas reserves with low production costs, and very high-income levels. Kuwait relies heavily on oil and exposes the risks of a long-term carbon transition, in addition to a difficult political environment that hinders its ability to gradually meet this challenge.
The agency indicated that the stable outlook reflects balanced risks to the rating, noting that the effective implementation of measures that reduce the government's exposure to oil revenues and diversify the economy, which Moody's does not currently take into account in its basic assumptions for at least the next two years, may lead to increased credit flexibility in the face of oil price fluctuations.
Source (Al-Rai Kuwaiti Newspaper, Edited)
