Moody’s: Kuwait stable

Moody's Investors Service said it changed the outlook on Kuwait to stable from negative and affirmed its Aa2 long-term issuer rating.

The decision to change the outlook reflects Moody's view that there are sufficient signs of the government's institutional capacity to effectively implement its fiscal and economic reform program to preserve creditworthiness in the medium term, which has the stated objective of diversifying and enhancing the economic base and its budgetary revenues.

The affirmation reflects the agency’s view that, despite Kuwait's slower fiscal and economic reform progress relative to other highly rated peers in the Gulf in response to lower oil prices, the sovereign's extraordinarily strong balance sheet, very high wealth levels and vast hydrocarbon reserves continue to support a credit profile that remains consistent with an Aa2 rating.

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