Fitch Affirms Kuwait's Sovereign Rating at 'AA' with Stable Outlook

The Central Bank of Kuwait said that Fitch Ratings reaffirmed today, Friday, Kuwait’s long-term sovereign credit rating at “AA-” with a stable outlook.

In a statement to the Kuwait News Agency (KUNA), 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 expects current regional geopolitical instability to impact local economic growth rates amid changes in oil production.

Fitch projected that non-oil gross domestic product (GDP) would experience positive, albeit slower, growth, supported by government spending on infrastructure development projects. It also forecast a slight rise in the inflation rate during 2026, before declining in 2027.

Regarding public debt, the agency anticipated an increase in the debt-to-GDP ratio over the next three fiscal years (through the end of the 2028/2029 fiscal year), adding, “Debt levels will remain below the median for sovereign-rated countries at AA, which stands at approximately 51.5 percent of projected GDP in 2028.”

Fitch highlighted external assets, confirming that Kuwait enjoys an exceptionally strong external financial position. It projected that net sovereign foreign assets as a percentage of GDP would rise in 2026, exceeding ten times the average for countries with an AA credit rating. The Central Bank of Kuwait’s statement noted that Fitch views the potential repercussions of ongoing geopolitical instability as remaining within manageable levels, given Kuwait’s substantial financial buffers.