Fitch has downgraded Kuwait's credit rating from AA to AA-, with a stable outlook. "Fitch" indicated that the classification reflects the difficulty of reaching fundamental decisions regarding the public sector, and reducing dependence on oil.
On the other hand, "Standard & Poor's" credit rating agency lowered Kuwait's rating to A+ due to the lack of a comprehensive financing strategy, revealing that the outlook is still negative.
According to Moody's, Kuwait has a number of strengths that support its credit rating, which are represented in owning huge and exceptional oil wealth, low total government debt, huge assets of sovereign wealth funds, and a very high level of per capita income. Moody's touched on the challenges facing Kuwait's credit rating, which are represented in the heavy dependence on the oil sector, and the resulting economic and financial fluctuations, and the tense relationship between the government and the National Assembly, which weakens the formation of policies and undermines the state's ability to adapt to shocks and regional geopolitical tensions.
Source (Al-Arabiya.net Website, Edited)
