Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

S1P affirms Kuwait AAA-1 credit rating  Join our daily free Newsletter

MENAFN - Arab Times - 02/09/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) KUWAIT CITY Aug 16 (KUNA): Standard & Poor's (S&P) on Friday affirmed its 'AA/A-1' long- and short-term foreign and local currency sovereign credit ratings on Kuwait with 'a stable outlook.' The rating agency said Kuwait has a rich oil and gas endowment which has made it wealthy and enabled it to build strong external and fiscal balance sheet positions. Kuwait accumulated these through large oil and gas resources and by managing its wealth in what we (S&P) consider to be a prudent manner according to a report by the agency. The ratings are constrained by the geopolitical tensions in the region as well as Kuwait's unpredictable and undiversified economy. The general government budget has shown a surplus of at least 10 per cent of GDP for the past decade said the report. 'We estimate that including our estimate of the government's income from vast investments the Kuwaiti government will have a surplus of about 30 percent of GDP for the budget year ending March 31 2015. 'Our base-case scenario assumes that oil prices although softening will remain high averaging 96 per barrel in 2014-2017 and that oil output will increase to about 3.5 million barrels per day by 2017 from about 3.2 million in 2013. 'As a result we project that the general government budget surplus will remain high at about 20 percent of GDP on average over the next four years (despite our expectations of the oil price moderating). 'We estimate the government's investment income was 9 percent of GDP in 2013 and we assume it will remain at about this level based on our estimate of the average return over the past five years' the report added. Kuwait increased its annual contributions to its Future Generations Fund to 25 percent of total revenues in the fiscal year ending in 2013 from 10 percent in previous years. The remaining surplus is invested by the General Reserve Fund and both funds are managed by the Kuwait Investment. The government's large net asset position which we estimate at over 2.7x GDP in 2014 is a significant ratings strength. The strength of oil exports resulted in average current account surpluses estimated at more than 30 percent of GDP in 2004-2013. Combined with the government's policy of investing a large portion of its surplus abroad this has led to a significant accumulation of external assets. 'At the same time we project that gross external financing needs will remain low averaging around 55 per cent of CARs plus usable reserves in the next four years' the report went on. 'We view Kuwait's creditworthiness as susceptible to any future sharp and sustained decline in oil prices. 'The oil sector accounts for about 60 percent of nominal GDP 90 per cent of exports and 80 percent of general government revenues (including investment income from the Kuwait Investment Authority)' it pointed out. The stable outlook reflects our expectations of continued strength in Kuwait's fiscal and external positions backed by oil revenues it added.

 


Arab Times




  MENA News Headlines
 Oct 26 2014 - Afghan president visits Saudi ArabiaArab News
(MENAFN - Arab News) KABUL: Afghanistan's President Ashraf Ghani Ahmadzai on Saturday made his first overseas trip since taking office fulfilling an election promise to undertake a religious ...

 Oct 26 2014 - Tens of thousands protest Renzi's job measures in RomeArab News
(MENAFN - Arab News) ROME: Tens of thousands of Italians took to the streets of Rome Saturday for a demo organized by Italy's largest trade union to protest Prime Minister Matteo Renzi's plans to ...

 Oct 26 2014 - France announces big coalition air raid against IS in IraqArab News
(MENAFN - Arab News) PARIS: The international coalition currently battling the IS group in Iraq dropped around 70 bombs on an arsenal and militant training center in a large-scale overnight raid the ...

 Oct 26 2014 - UN climate chief hails EU dealArab News
(MENAFN - Arab News) BONN: The UN's climate chief hailed a European agreement on greenhouse gases Friday as providing 'valuable momentum' for a world pact to be inked in Paris next year.The goals set ...

 Oct 26 2014 - Russia still has troops in Ukraine NATO saysArab News
(MENAFN - Arab News) MONS Belgium: Russia still has troops in eastern Ukraine and retains a very capable force on the border despite a partial withdrawal NATO's military commander said on ...

 Oct 26 2014 - Canadians seek to understand Parliament shootingArab News
(MENAFN - Arab News) OTTAWA Ontario: Authorities and ordinary Canadians sifted through confounding shards of a gunman's life seeking to understand what motivated the man to storm the nation's seat of ...

 Oct 26 2014 - Abu Dhabi int'l Airport traffic up 23.9 percent in SeptemberMENAFN
(MENAFN) Abu Dhabi Airports reported an increase in passenger traffic by 23.9 percent during September compared to the same month last year, with 1.696.651 passengers using the airport during the ...

 Oct 26 2014 - Morocco, Chad sign agreementsMENAFN
(MENAFN) Morocco announced it has signed a set of agreements and memoranda of understanding with Chad regarding several fields, QNA reported.The agreements which were signed by both countries include ...

 Oct 26 2014 - BASF warns on profitsArab News
(MENAFN - Arab News) BERLIN: Chemical and oil company BASF is warning that its profits will come in below its previous forecast in the wake of slower global economic growth and industrial ...

 Oct 26 2014 - Saudi- Fawaz Alhokair's net profit rises 7.72Arab News
(MENAFN - Arab News) JEDDAH: Saudi Arabia retailer Fawaz Abdulaziz Alhokair Co. reported a 7.7 percent rise in second-quarter profit as sales increased and it made foreign exchange gains but the ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help