Fitch: Kuwait's exceptional strength in its financial centers

The Central Bank of Kuwait stated that Fitch Ratings reaffirmed Kuwait’s long-term sovereign credit rating at AA with a stable outlook on Friday. In a press release, the bank added that the key findings of Fitch’s report indicate that Kuwait’s credit rating reflects the country’s exceptional strength in its financial and external positions. The statement clarified that regarding economic growth and inflation, Fitch anticipated that the current regional geopolitical instability would impact local economic growth rates amid changes in oil production. The agency forecast positive, albeit slower, growth for non-oil GDP, supported by government spending on infrastructure development projects, and predicted a slight rise in the inflation rate in 2026 before it declines in 2027. On public debt, the agency projected an increase in the debt-to-GDP ratio over the next three fiscal years, through the end of the 2028/2029 fiscal year, adding that debt levels would remain below the median for countries with an AA sovereign rating, which stands at approximately 51.5% of projected GDP in 2028. Fitch highlighted external assets, confirming that Kuwait enjoys an exceptionally strong external financial position, and projected that net sovereign foreign assets as a percentage of GDP would rise in 2026 to more than ten times the average for countries with an AA credit rating. The Central Bank’s statement noted that Fitch views the potential repercussions of ongoing geopolitical instability as remaining within manageable levels, given Kuwait’s substantial financial buffers. In a related development, the Ministry of Finance reviewed Kuwait’s ratings from the three major global credit rating agencies via its official accounts, noting that Fitch’s rating update on August 7, 2026, reaffirmed the country’s sovereign credit rating at AA with a stable outlook. Additionally, Standard & Poor’s maintained its AA rating with a stable outlook on May 22, while Moody’s assigned an A1 rating with a stable outlook on the same date.