The credit rating agency, Fitch, has awarded the State of Kuwait a sovereign credit rating of AA with a stable outlook.
According to the agency, the exceptional financial and external conditions of Kuwait represent the strengths of its sovereign credit rating, which is increasingly matched by institutional deficits and the slowness in addressing the challenges of financing the public budget resulting from heavy dependence on oil.
The agency estimated the net foreign sovereign assets managed by the General Investment Authority at about 529 billion dollars, representing 472% of the gross domestic product, which is the highest among the countries classified by the agency. Indicating that this value includes the net assets of the Future Generations Reserve Fund, estimated at $489 billion, and the value of this fund is constantly increasing as a result of the continuous annual transfers of about 10% of the total public revenue of the state.
It also expected the public budget to record a fiscal deficit of about 20% of GDP, about 3.7 billion Kuwaiti dinars (9.21 billion dollars) during the current fiscal year, reflecting the basic assumptions of the agency that Brent crude would reach about 35 and 45 dollars per barrel in 2020 and 2021, respectively.
Source (Al-Arabiya.net website, Edited)
