Kuwait – Mubasher: Moody's Investors Service confirmed its long-term issuer ratings for Kuwait's government at Aa2 and assigned a negative outlook.

The confirmed rating reflects the ratings agency's view that "despite the negative effect of a protracted period of low oil prices on the economy, government finances and external strength, the sovereign's overall credit profile remains consistent with a Aa2 rating."

Meanwhile, the negative outlook decision reflects Moody's view that 
material uncertainties around the Kuwaiti government's ability to effectively implement its fiscal and economic reform programme remain, which has the stated objective of diversifying and enhancing the economic base and its budgetary revenues, Moody's said in a statement on Saturday.

"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," the statement added.
Moody's maintained Kuwait's long-term and short-term foreign-currency bond and deposit ceilings at Aa2 and Prime-1, respectively, while the gulf country's long-term local-currency country risk ceilings have been kept at Aa2.

"Today's rating action concludes the review for downgrade which Moody's initiated on 4 March 2016," Moody's noted.