Quotes: 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
 Sep 3 2015 - SABIC cuts steel price by SR 200 per tonSaudi Press Agency
(MENAFN - Saudi Press Agency) Riyadh Dhu-AlQa'dah 19 1436 September 03 2015 SPA --Saudi Basic Industries Corporation "SABIC" announced that it cut the steel price by SR 200 per ton in all regions ...

 Sep 3 2015 - Jeddah Governor Receives Turkey39s Representative to OICSaudi Press Agency
(MENAFN - Saudi Press Agency) Jeddah Dhu-AlQa'dah 19 1436 Sep 3 2015 SPA -- Prince Misha'al bin Majed bin Abdulaziz Governor of Jeddah received here today Ambassador Salih Mutlu Cen recently ...

 Sep 3 2015 - Kuwait Stock Exchange ends Thursday in mixed zoneSaudi Press Agency
(MENAFN - Saudi Press Agency) KUWAIT Dhu-AlQa'dah 19 1436 September 03 2015 SPA -- Kuwait Stock Exchange (KSE) ended Thursday in the mixed zone as the weighted index gained 2.43 points reaching ...

 Sep 3 2015 - Muscat Securities Market Loses 1.5 PointSaudi Press Agency
(MENAFN - Saudi Press Agency) Muscat Dhu-AlQa'dah 19 1436 September 03 2015 SPA -- Muscat Securities Market (MSM) general index (30) today lost (1.5) point comprising a decline by (0.03%) to ...

 Sep 3 2015 - Turkish Workers Abducted in BaghdadThe Arabian Post
(MENAFN - The Arabian Post) In the early morning darkness on Wednesday, masked gunmen in military uniforms rolled up in more than a dozen black sport utility vehicles to a construction site on the ...

 Sep 3 2015 - President Abdel Fattah el-Sisi hopes to shift the economic reliance from tourism to world trade with the opening of the new canalInvestors Ideas
(MENAFN - Investors Ideas) Time has a whole different meaning in Egypt. Ten minutes tends to be anywhere from twenty minutes to forty-five in actuality but people don't seem to mind.The day after the ...

 Sep 3 2015 - 20 Yemenis Killed in Bombings at Mosque in CapitalThe Arabian Post
(MENAFN - The Arabian Post) A suicide bomber and a subsequent car bomb killed at least 20 people on Wednesday at a mosque here in Yemen's rebel-held capital amid the country's raging civil war, ...

 Sep 3 2015 - Saudi- Handle with careArab News
(MENAFN - Arab News) This is with reference to the article 'Turkey at a crossroads' (Sept. 2) by Stuart Williams. Within a very short span Turkey emerged as a power country rapidly moving on the road ...

 Sep 3 2015 - Saudi- Jeddah Eve teasingArab News
(MENAFN - Arab News) This is with reference to the report 'Three youths charged in girls' harassment case' (Sept. 2). The video showing the unruly behavior of those young men had left me speechless. ...

 Sep 3 2015 - Ø¨ÙˆØ¯Ø§Ø¨Ø³Øª تفتح محطة قطارات أمام العالقينQatar News Agency
(MENAFN - Qatar News Agency) فتحت السلطات المجرية اليوم أبواب محطة قطارات في العاصمة بودابست أمام مهاجرين عالقين بعد ...

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help