|The ratings take into account Kuwait’s stellar fiscal and current-account surpluses and very low level of public debt, as well as the considerable size of its sovereign wealth fund and other foreign assets. The country’s over-dependence on the oil- related sector and weak business environment relative to its GCC peers have also been factored into RAM’s assessment.
“The run-up in global crude prices has made Kuwait one of the world’s wealthiest nations per capita,” notes Esther Lai, RAM’s Head of Sovereign Ratings. “Kuwait’s sovereign wealth fund – estimated as the fifth-largest in the world – acts as a strong buffer against shocks and provides some form of revenue diversification through the investment income it receives. Moreover, the country’s public debt is negligible. Taken together, these factors reinforce the strength of Kuwait’s public finances,” emphasises Lai...............................................Full Article: Source