S&P puts Kuwait credit rating at AA/A-1+ | Economy | Saudi Gazette

S&P puts Kuwait credit rating at AA/A-1+ | Economy | Saudi Gazette:



"Standard and Poor's on Friday affirmed its "AA/A-1+" long- and short-term foreign and local currency sovereign credit ratings on Kuwait with "a stable outlook." The rating agency said Kuwait has a rich oil and gas endowment, which has made it wealthy and enabled it to build strong external and fiscal balance sheet positions. Kuwait accumulated these through large oil and gas resources and by managing its wealth in what we (S&P) consider to be a prudent manner, according to a report by the agency. 
 



The ratings are constrained by the geopolitical tensions in the region, as well as Kuwait's unpredictable and undiversified economy.
 



The general government budget has shown a surplus of at least 10 per cent of GDP for the past decade, said the report. "We estimate that – including our estimate of the government's income from vast investments – the Kuwaiti government will have a surplus of about 30 percent of GDP for the budget year ending March 31, 2015."



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