Moody’s gives Kuwait negative outlook

Moody's Investors Service said it confirmed Kuwait's long-term issuer ratings at Aa2 and assigned a negative outlook.

The action concludes the review for downgrade initiated on March 4.

Moody’s said the negative outlook reflects its view that there remain material uncertainties around the Kuwaiti government's ability to effectively implement its fiscal and economic reform program, which has the stated objective of diversifying and enhancing the economic base and its budgetary revenues.

According to the agency, the Kuwaiti government's inability to do so would be a signal of a level of institutional weakness that is inconsistent with a Aa2 rating.

Kuwait's long-term and short-term foreign-currency bond and deposit ceilings remain at Aa2 and Prime-1, respectively. Its long-term local-currency country risk ceilings also remain at Aa2.

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