Mubasher: Fitch Ratings affirmed Kuwait's long-term foreign and local currency issuer default ratings (IDRs) at 'AA' with a Stable Outlook, Fitch said in a recent report.

According to the rating agency’s report, the country ceiling has been affirmed at 'AA+' and the short-term foreign and local currency IDRs have been affirmed at 'F1+', the report indicated.

“Kuwait's key credit strengths are the sovereign's exceptionally strong fiscal and external metrics and, at a forecast $46/bbl, one of the lowest fiscal breakeven Brent oil prices among Fitch-rated oil exporters,” it added.

“These strengths are tempered by Kuwait's heavily oil- dependent economy, geopolitical risk, and weak measures of governance and ease of doing business.”

A generous welfare state and the large economic role of the public sector present challenges in the long term, given robust growth of the Kuwaiti population.

The Kuwaiti government has previously announced the intention to issue KWD 2 billion of local debt and KWD 2.9 billion of foreign debt.

Fitch estimates the general government surplus at 0.3% of GDP, around KWD 90 million in FY15/16.