In a general review of the sovereign ratings in the Middle East and North Africa region for the third quarter of 2020, “Fitch” Ratings Agency revealed that Kuwait is among the highest rated countries, but it has faced financing challenges driven by several political factors, despite the strength of its financial position and its huge assets. Pointing out that Kuwait does not face any credit problems.
"Fitch" indicated that the possibility of continuing to rise in fiscal deficits in many oil-exporting countries in the region will lead to a deterioration in their balance sheets, revealing that 4 out of 14 countries in the Middle East and North Africa show negative expectations, namely: Oman (has lowered its credit rating twice in 2020. ), Iraq, Jordan, and Morocco, which reflects the great damage to the public financial sectors (internal and external) and economic growth in these countries, as a result of the outbreak of the "Corona" pandemic and the drop in oil prices.
“Fitch” stated that financing large fiscal deficits in a volatile financial market environment remains a major risk for lower-rated governments in the MENA region, despite improved access to debt and international liquidity markets for some countries since the height of the crisis.
Source (Al-Arabiya.net, Edited)
