Moody’s Places Kuwait Ratings on Review for Possible Downgrade

Kuwait’s sovereign ratings were placed on review for possible downgrade at Moody’s Investors Service today.

“The rating action was primarily motivated by the recent resignation of Kuwait’s government and the dissolution of parliament -- the latest bout in the disruptive conflict between the executive and the legislature,” Moody’s said in a statement today.

“These events reflect an erosion of institutional strength which is of particular concern given the current challenges presented to Kuwait by the global economic and financial crisis,” it said.

The affected ratings are the Aa2 local and foreign currency government bond ratings and the Aa2 country ceiling for foreign currency bank deposits, Moody’s said. Kuwait’s local currency country ceilings and country ceiling for foreign currency bonds remain at Aa2 and are not included in the ratings review.(END)