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Wednesday 3 February 2021
Oil Surges as OPEC+ Pledges to Clear Pandemic-Driven Surplus - Bloomberg
Oil Surges as OPEC+ Pledges to Clear Pandemic-Driven Surplus - Bloomberg
Oil Jumps After OPEC+ Pledges to Clear Oil Surplus Left By Virus - Bloomberg
Oil Jumps After OPEC+ Pledges to Clear Oil Surplus Left By Virus - Bloomberg
Oil gained as OPEC and its allies pledged to keep pursuing a speedy market rebalancing while global inventories continue to shrink.
Futures in New York surged as much as 2.7% to the highest in more than a year on Wednesday. A committee of OPEC+ ministers said it will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. Declining inventories are a sign of the group’s work: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed a crude stockpile drop of nearly 1 million barrels.
“OPEC is holding the line on production, the vaccine rollout is progressing, Covid cases are rolling over and the stimulus package is making some progress,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets.
Oil gained as OPEC and its allies pledged to keep pursuing a speedy market rebalancing while global inventories continue to shrink.
Futures in New York surged as much as 2.7% to the highest in more than a year on Wednesday. A committee of OPEC+ ministers said it will keep pushing to quickly clear the oil surplus left by the pandemic-induced demand slump. Declining inventories are a sign of the group’s work: Chinese stockpiles are at the lowest in almost a year and a U.S. government report on Wednesday showed a crude stockpile drop of nearly 1 million barrels.
“OPEC is holding the line on production, the vaccine rollout is progressing, Covid cases are rolling over and the stimulus package is making some progress,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets.
#Kuwait fund claims state immunity in legal row with former staff | Reuters
Kuwait fund claims state immunity in legal row with former staff | Reuters
A lawyer representing Kuwait Investment Authority’s London office has told an employment tribunal that the fund should be covered by diplomatic immunity in a legal wrangle involving former staff accused of inflating bonuses.
Former fixed income head Simon Hard and another former staff member are pursuing an employment tribunal case against the Kuwait office, part of one of the world’s largest sovereign wealth funds, for alleged victimisation, discrimination and so-called whistleblowing detriment.
The former employees are being sued by the fund over an alleged conspiracy to award unlawful pay rises, but the High Court in July granted them a stay of application in that case in order to allow them to go ahead with their employment tribunal.
The former staff deny the allegations of inflated bonuses.
A lawyer representing Kuwait Investment Authority’s London office has told an employment tribunal that the fund should be covered by diplomatic immunity in a legal wrangle involving former staff accused of inflating bonuses.
Former fixed income head Simon Hard and another former staff member are pursuing an employment tribunal case against the Kuwait office, part of one of the world’s largest sovereign wealth funds, for alleged victimisation, discrimination and so-called whistleblowing detriment.
The former employees are being sued by the fund over an alleged conspiracy to award unlawful pay rises, but the High Court in July granted them a stay of application in that case in order to allow them to go ahead with their employment tribunal.
The former staff deny the allegations of inflated bonuses.
#Saudi shares lead broader Gulf losses, Egypt weakens | Reuters
Saudi shares lead broader Gulf losses, Egypt weakens | Reuters
The markets in the United Arab Emirates (UAE) fell on Wednesday after solid gains in the previous two days, while Saudi Arabia extended losses to a fourth straight session as it imposed further restrictions to curb the spread of the coronavirus.
Dubai, which firmed more than 1% each in the past two sessions, weakened 0.4%, dragged mainly by financial stocks.
The Dubai Stock Exchange operator Dubai Financial Market slipped nearly 5%, while the emirate’s biggest bank Emirates NBD declined 1.3%.
A second wave of coronavirus infections threatens to upend a tourism boom in Dubai that provided salve to its battered economy.
Dubai, one of the few destinations open to international travellers since July, has yet to impose the toughest restrictions after record daily infections in the UAE, in the hope that vaccinations will spare a repeat of last year’s lockdown.
The Abu Dhabi index retreated 0.4%, hurt by a nearly 1% fall in the UAE’s largest lender First Abu Dhabi Bank, while the National Bank of Ras Al-Khaimah lost about 4%.
Mild growth in the UAE’s non-oil private sector was unchanged in January as business activity grew solidly and employment increased for the first time in over a year, although sales growth weakened, a survey showed.
Saudi Arabia’s benchmark index extended its losing streak to a fourth session, with a 0.9% decline.
Saudi Arabia on Tuesday suspended entry to the kingdom from 20 countries, with the exception of diplomats, Saudi citizens, medical practitioners and their families, to help curb the spread of the coronavirus.
The kingdom’s biggest lender National Commercial Bank declined 2.1%, while another lneder Banque Saudi Fransi dropped 3.1%.
However, Al Rajhi Bank finished in the positive territory, gaining 0.3% after it reported a higher full-year profit.
Elsewhere, in Qatar, the index declined 0.4%, with petrochemical company Industries Qatar and the Gulf’s biggest lender Qatar National Bank falling 1.8% and 0.8%, respectively.
The markets in the United Arab Emirates (UAE) fell on Wednesday after solid gains in the previous two days, while Saudi Arabia extended losses to a fourth straight session as it imposed further restrictions to curb the spread of the coronavirus.
Dubai, which firmed more than 1% each in the past two sessions, weakened 0.4%, dragged mainly by financial stocks.
The Dubai Stock Exchange operator Dubai Financial Market slipped nearly 5%, while the emirate’s biggest bank Emirates NBD declined 1.3%.
A second wave of coronavirus infections threatens to upend a tourism boom in Dubai that provided salve to its battered economy.
Dubai, one of the few destinations open to international travellers since July, has yet to impose the toughest restrictions after record daily infections in the UAE, in the hope that vaccinations will spare a repeat of last year’s lockdown.
The Abu Dhabi index retreated 0.4%, hurt by a nearly 1% fall in the UAE’s largest lender First Abu Dhabi Bank, while the National Bank of Ras Al-Khaimah lost about 4%.
Mild growth in the UAE’s non-oil private sector was unchanged in January as business activity grew solidly and employment increased for the first time in over a year, although sales growth weakened, a survey showed.
Saudi Arabia’s benchmark index extended its losing streak to a fourth session, with a 0.9% decline.
Saudi Arabia on Tuesday suspended entry to the kingdom from 20 countries, with the exception of diplomats, Saudi citizens, medical practitioners and their families, to help curb the spread of the coronavirus.
The kingdom’s biggest lender National Commercial Bank declined 2.1%, while another lneder Banque Saudi Fransi dropped 3.1%.
However, Al Rajhi Bank finished in the positive territory, gaining 0.3% after it reported a higher full-year profit.
Elsewhere, in Qatar, the index declined 0.4%, with petrochemical company Industries Qatar and the Gulf’s biggest lender Qatar National Bank falling 1.8% and 0.8%, respectively.
#AbuDhabi money launderers must repay Dh8bn swindled from government company | The National
Abu Dhabi money launderers must repay Dh8bn swindled from government company | The National
Two heads of an Abu Dhabi government-owned company must repay Dh8 billion they swindled from it.
Judges at Abu Dhabi Criminal Court also found them guilty of forgery and abusing public funds. It jailed them for 15 years.
The defendants – a chairman and chief executive – were discovered “in the context of corruption cases”.
The duo created fake businesses outside the country that cloned their employer so payments from two legitimate companies could be channelled to them illegally.
This was “to achieve their basic objective, which is to pour money from the agreements and contracts into their personal bank accounts,” the department said.
Judges ordered the two to collectively pay Dh8bn to the two victim companies, starting with compensation of Dh501,000.
Two heads of an Abu Dhabi government-owned company must repay Dh8 billion they swindled from it.
Judges at Abu Dhabi Criminal Court also found them guilty of forgery and abusing public funds. It jailed them for 15 years.
The defendants – a chairman and chief executive – were discovered “in the context of corruption cases”.
The duo created fake businesses outside the country that cloned their employer so payments from two legitimate companies could be channelled to them illegally.
This was “to achieve their basic objective, which is to pour money from the agreements and contracts into their personal bank accounts,” the department said.
Judges ordered the two to collectively pay Dh8bn to the two victim companies, starting with compensation of Dh501,000.
#Saudi Wealth Fund May Double Loan to $15 Billion for Deals - Bloomberg
Saudi Wealth Fund May Double Loan to $15 Billion for Deals - Bloomberg
Saudi Arabia’s sovereign wealth fund may raise a loan that’s more than double what it sought late last year for new investments following strong demand from lenders, according to people familiar with the matter.
The Public Investment Fund is set to increase the loan size to as much as $15 billion from an initial plan to raise $5 billion to $7 billion, the people said, asking not to be identified as the information is private. The fund is looking to agree on terms with banks in the next few weeks and a final decision on the size hasn’t yet been made, they said.
The PIF declined to comment.
The $400 billion sovereign investor is key to the kingdom’s efforts to revive economic growth after what may be the deepest recession the world’s largest crude exporter has experienced in decades. Handed $40 billion earlier this year to buy global stocks, the PIF plans to plow the same amount into the domestic economy next year and again in 2022.
Saudi Arabia’s sovereign wealth fund may raise a loan that’s more than double what it sought late last year for new investments following strong demand from lenders, according to people familiar with the matter.
The Public Investment Fund is set to increase the loan size to as much as $15 billion from an initial plan to raise $5 billion to $7 billion, the people said, asking not to be identified as the information is private. The fund is looking to agree on terms with banks in the next few weeks and a final decision on the size hasn’t yet been made, they said.
The PIF declined to comment.
The $400 billion sovereign investor is key to the kingdom’s efforts to revive economic growth after what may be the deepest recession the world’s largest crude exporter has experienced in decades. Handed $40 billion earlier this year to buy global stocks, the PIF plans to plow the same amount into the domestic economy next year and again in 2022.
Oil hits 11-month high after fall in U.S. crude stocks | Reuters
Oil hits 11-month high after fall in U.S. crude stocks | Reuters
Oil hit an 11-month high on Wednesday, boosted by a draw in U.S. crude and gasoline stocks, which fuelled demand recovery hopes as OPEC+ has forecast that the market will be in deficit in 2021.
Brent crude futures were up 48 cents, or 0.8%, to $57.94 a barrel at 0839 GMT, their highest since late February 2020.
The contract’s “backwardation” structure, where oil for nearby delivery is more expensive than further forward, was near a one-year high at more than $2, indicating expectations of tighter supply.
U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.6%, to $55.10 a barrel. The benchmark hit a one-year high at $55.26 on Tuesday.
Oil hit an 11-month high on Wednesday, boosted by a draw in U.S. crude and gasoline stocks, which fuelled demand recovery hopes as OPEC+ has forecast that the market will be in deficit in 2021.
Brent crude futures were up 48 cents, or 0.8%, to $57.94 a barrel at 0839 GMT, their highest since late February 2020.
The contract’s “backwardation” structure, where oil for nearby delivery is more expensive than further forward, was near a one-year high at more than $2, indicating expectations of tighter supply.
U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.6%, to $55.10 a barrel. The benchmark hit a one-year high at $55.26 on Tuesday.
Emirates Mulls Swapping a Third of Boeing 777X Orders to 787 - Bloomberg
Emirates Mulls Swapping a Third of Boeing 777X Orders to 787 - Bloomberg
Boeing Co.’s biggest 777X customer is weighing whether to swap as many as a third of its orders for the smaller 787 Dreamliner, said a person familiar with the matter, adding to the uncertainty swirling around the behemoth jet’s future.
Gulf carrier Emirates is seeking to switch between 30 and 40 of its 115 commitments for the 777X to the Dreamliner as it calibrates fleet plans, said the person, who asked not to be identified discussing private considerations. The moves could further squeeze the profits of Boeing’s newest jet, which faces a lengthy regulatory review and design changes.
The U.S. planemaker signaled Monday that it’s at risk of losing nearly 40% its 777X order haul because the latest delay to the plane’s debut -- now slated for late 2023 -- gives customers the right to walk away from sales contracts.
Boeing lowered the 777X backlog to just 191 jets in a regulatory filing, far fewer than the 309 firm orders listed on its website. The drop is due to an accounting standard that requires sales at risk of falling through to be removed from backlog, the company said in an email.
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| The Boeing 777X airplane. Photographer: Chona Kasinger/Bloomberg |
Boeing Co.’s biggest 777X customer is weighing whether to swap as many as a third of its orders for the smaller 787 Dreamliner, said a person familiar with the matter, adding to the uncertainty swirling around the behemoth jet’s future.
Gulf carrier Emirates is seeking to switch between 30 and 40 of its 115 commitments for the 777X to the Dreamliner as it calibrates fleet plans, said the person, who asked not to be identified discussing private considerations. The moves could further squeeze the profits of Boeing’s newest jet, which faces a lengthy regulatory review and design changes.
The U.S. planemaker signaled Monday that it’s at risk of losing nearly 40% its 777X order haul because the latest delay to the plane’s debut -- now slated for late 2023 -- gives customers the right to walk away from sales contracts.
Boeing lowered the 777X backlog to just 191 jets in a regulatory filing, far fewer than the 309 firm orders listed on its website. The drop is due to an accounting standard that requires sales at risk of falling through to be removed from backlog, the company said in an email.
#Kuwait Cashes Out of Key Assets to Stave Off Liquidity Crunch - Bloomberg
Kuwait Cashes Out of Key Assets to Stave Off Liquidity Crunch - Bloomberg
Kuwait’s government has transferred the last of its performing assets to the country’s sovereign wealth fund in exchange for cash to plug a monthly budget deficit of $3.3 billion, a person familiar with the matter said, leaving one of the world’s richest nations with few options to pay its bills.
Fitch on Wednesday cut Kuwait’s outlook to negative from stable, citing “the imminent depletion of liquid assets” in the absence of parliamentary authorization for the government to borrow.” The rating was affirmed at AA.
The assets include stakes in Kuwait Finance House and telecoms company Zain, the person said, asking not to be named because the information is private. State-owned Kuwait Petroleum Corp. was also transferred from the government’s treasury to the $600 billion Future Generations Fund, meant to safeguard the Gulf Arab nation’s wealth for a time after oil. KPC has a nominal value of 2.5 billion dinars ($8.3 billion), the person said.
The Finance Ministry declined to give details about the swaps.
Kuwait’s government has transferred the last of its performing assets to the country’s sovereign wealth fund in exchange for cash to plug a monthly budget deficit of $3.3 billion, a person familiar with the matter said, leaving one of the world’s richest nations with few options to pay its bills.
Fitch on Wednesday cut Kuwait’s outlook to negative from stable, citing “the imminent depletion of liquid assets” in the absence of parliamentary authorization for the government to borrow.” The rating was affirmed at AA.
The assets include stakes in Kuwait Finance House and telecoms company Zain, the person said, asking not to be named because the information is private. State-owned Kuwait Petroleum Corp. was also transferred from the government’s treasury to the $600 billion Future Generations Fund, meant to safeguard the Gulf Arab nation’s wealth for a time after oil. KPC has a nominal value of 2.5 billion dinars ($8.3 billion), the person said.
The Finance Ministry declined to give details about the swaps.
#UAE Job Market Improves as Vaccine Rollout Boosts Confidence - Bloomberg
UAE Job Market Improves as Vaccine Rollout Boosts Confidence - Bloomberg
Business activity in the Arab world’s two largest economies improved at the start of 2021, with the United Arab Emirates seeing growth in its job market for the first time in over a year.
Non-oil private sector activity in Saudi Arabia soared during January as new work levels increased and operating conditions improved marginally in neighboring UAE, helped by an expansion in new orders and output.
Purchasing Managers’ Index surveys compiled by IHS Markit last month for the two Gulf nations were above the threshold of 50 that separates growth from contraction.
“The rapid roll-out of Covid-19 vaccines in the UAE should help to restore confidence in markets over the first half of 2021, although firms were still relatively downbeat about future growth in January,” said David Owen, economist at IHS Markit.
Business activity in the Arab world’s two largest economies improved at the start of 2021, with the United Arab Emirates seeing growth in its job market for the first time in over a year.
Non-oil private sector activity in Saudi Arabia soared during January as new work levels increased and operating conditions improved marginally in neighboring UAE, helped by an expansion in new orders and output.
Purchasing Managers’ Index surveys compiled by IHS Markit last month for the two Gulf nations were above the threshold of 50 that separates growth from contraction.
“The rapid roll-out of Covid-19 vaccines in the UAE should help to restore confidence in markets over the first half of 2021, although firms were still relatively downbeat about future growth in January,” said David Owen, economist at IHS Markit.
#UAE non-oil private sector mild growth unchanged in January -PMI | Reuters
UAE non-oil private sector mild growth unchanged in January -PMI | Reuters
Mild growth in the United Arab Emirates’ non-oil private sector was unchanged in January as business activity grew solidly and employment increased for the first time in over a year, although sales growth weakened, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, was at 51.2 in January, steady from December when it rose above the 50.0 mark that separates growth from contraction for the first time since September.
While the reading marks the index’s joint-highest reading since August 2019, it signalled only a marginal improvement in business conditions from the end of last year and was well below the series’ average of 54.2.
“Compared to the results seen throughout 2020, the latest data indicated more favourable business conditions. However, with firms still having to make up lost ground from the COVID-19 lockdown, the pace of recovery so far appears subdued,” said David Owen, economist at survey compiler IHS Markit.
Output dipped slightly to 53.0 in January from 53.4 in December - which was a five-month high - but the pace of growth remained among the quickest since the downturn triggered by the pandemic began.
Mild growth in the United Arab Emirates’ non-oil private sector was unchanged in January as business activity grew solidly and employment increased for the first time in over a year, although sales growth weakened, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, was at 51.2 in January, steady from December when it rose above the 50.0 mark that separates growth from contraction for the first time since September.
While the reading marks the index’s joint-highest reading since August 2019, it signalled only a marginal improvement in business conditions from the end of last year and was well below the series’ average of 54.2.
“Compared to the results seen throughout 2020, the latest data indicated more favourable business conditions. However, with firms still having to make up lost ground from the COVID-19 lockdown, the pace of recovery so far appears subdued,” said David Owen, economist at survey compiler IHS Markit.
Output dipped slightly to 53.0 in January from 53.4 in December - which was a five-month high - but the pace of growth remained among the quickest since the downturn triggered by the pandemic began.
#Saudi non-oil private sector continues solid growth in January -PMI | Reuters
Saudi non-oil private sector continues solid growth in January -PMI | Reuters
Saudi Arabia’s non-oil private sector grew strongly in January, its fifth straight month of expansion, as output soared and firms were hopeful of a substantial economic recovery, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose slightly to 57.1 in January from 57.0 in December. The 50.0 mark separates growth from contraction.
The January and December readings were the highest since November 2019 and above the series average of 56.9, according to a Reuters calculation based on the PMI data.
“The country has been helped by low case numbers, while other parts of the world have suffered a spike in infections that risks derailing the upturn in the global economy,” said David Owen, economist at survey compiler IHS Markit.
The headline index’s rise was supported by the sharpest growth in business activity in 15 months - output rose to 61.2 in January from 59.0 in December.
Saudi Arabia’s non-oil private sector grew strongly in January, its fifth straight month of expansion, as output soared and firms were hopeful of a substantial economic recovery, a survey showed on Wednesday.
The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose slightly to 57.1 in January from 57.0 in December. The 50.0 mark separates growth from contraction.
The January and December readings were the highest since November 2019 and above the series average of 56.9, according to a Reuters calculation based on the PMI data.
“The country has been helped by low case numbers, while other parts of the world have suffered a spike in infections that risks derailing the upturn in the global economy,” said David Owen, economist at survey compiler IHS Markit.
The headline index’s rise was supported by the sharpest growth in business activity in 15 months - output rose to 61.2 in January from 59.0 in December.
Most Gulf markets fall in early trade; #Qatar rises | Reuters
Most Gulf markets fall in early trade; Qatar rises | Reuters
Most major stock markets in the Gulf retreated early on Wednesday, with Saudi Arabia on track to extend losses for a fourth consecutive session as it imposed further restrictions aimed at curbing the spread of coronavirus.
Saudi Arabia’s benchmark index fell 0.7%, with the country’s largest lender National Commercial Bank falling 1.4% and Dr Sulaiman Al-Habib Medical Services losing 1.2%.
However, Al Rajhi Bank edged up 0.1% after it reported a higher full-year profit.
Saudi Arabia on Tuesday suspended entry to the kingdom from 20 countries, with the exception of diplomats, Saudi citizens, medical practitioners and their families, to help curb the spread of the coronavirus.
Last week, Saudi Arabia extended its travel ban for citizens and port closures to May 17 from March 31.
The health minister had said deliveries of COVID-19 vaccines are being delayed.
In Dubai, the index lost 0.6%, weighed down by a 1% drop in blue-chip developer Emaar Properties and 2.4% slide in Dubai Investments.
Dubai will begin vaccinating people with the Oxford-AstraZeneca COVID-19 shot, the state media office said on Tuesday, as the United Arab Emirates battles its biggest outbreak since the pandemic began.
The first shipment has arrived from India, the media office said in a tweet. It did not say how many doses were received or when inoculations would start.
The Abu Dhabi index edged down 0.2%, hit by a 0.5% fall in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index bucked the trend to trade 0.4% higher, with telecom major Ooredoo advancing 2.5%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported citing two sources, ahead of a potential sale of international bonds.
Most major stock markets in the Gulf retreated early on Wednesday, with Saudi Arabia on track to extend losses for a fourth consecutive session as it imposed further restrictions aimed at curbing the spread of coronavirus.
Saudi Arabia’s benchmark index fell 0.7%, with the country’s largest lender National Commercial Bank falling 1.4% and Dr Sulaiman Al-Habib Medical Services losing 1.2%.
However, Al Rajhi Bank edged up 0.1% after it reported a higher full-year profit.
Saudi Arabia on Tuesday suspended entry to the kingdom from 20 countries, with the exception of diplomats, Saudi citizens, medical practitioners and their families, to help curb the spread of the coronavirus.
Last week, Saudi Arabia extended its travel ban for citizens and port closures to May 17 from March 31.
The health minister had said deliveries of COVID-19 vaccines are being delayed.
In Dubai, the index lost 0.6%, weighed down by a 1% drop in blue-chip developer Emaar Properties and 2.4% slide in Dubai Investments.
Dubai will begin vaccinating people with the Oxford-AstraZeneca COVID-19 shot, the state media office said on Tuesday, as the United Arab Emirates battles its biggest outbreak since the pandemic began.
The first shipment has arrived from India, the media office said in a tweet. It did not say how many doses were received or when inoculations would start.
The Abu Dhabi index edged down 0.2%, hit by a 0.5% fall in the United Arab Emirates’ largest lender First Abu Dhabi Bank.
In Qatar, the index bucked the trend to trade 0.4% higher, with telecom major Ooredoo advancing 2.5%.
The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported citing two sources, ahead of a potential sale of international bonds.
Fitch cuts outlook on #Kuwait's debt rating to 'negative' | Reuters
Fitch cuts outlook on Kuwait's debt rating to 'negative' | Reuters
Rating agency Fitch said on Wednesday it downgraded the outlook on Kuwait’s sovereign debt rating to “negative” from “stable”, saying it saw near-term liquidity risks associated with the state treasury fund.
Fitch affirmed Kuwait’s long-term rating at “AA”.
The rating agency said the outlook change reflects near-term liquidity risk associated with the imminent depletion of liquid assets in the General Reserve Fund (GRF) in the absence of parliamentary authorisation for the government to borrow.
An OPEC member state, Kuwait has been hit hard by lower crude prices and the coronavirus pandemic.
Rating agency Fitch said on Wednesday it downgraded the outlook on Kuwait’s sovereign debt rating to “negative” from “stable”, saying it saw near-term liquidity risks associated with the state treasury fund.
Fitch affirmed Kuwait’s long-term rating at “AA”.
The rating agency said the outlook change reflects near-term liquidity risk associated with the imminent depletion of liquid assets in the General Reserve Fund (GRF) in the absence of parliamentary authorisation for the government to borrow.
An OPEC member state, Kuwait has been hit hard by lower crude prices and the coronavirus pandemic.