RIYADH: Kuwait secured an upgrade to AA- from A+ at S&P Global Ratings, which cited stronger reform momentum and reduced fiscal funding risks as the Gulf state accelerates its long-term economic overhaul.
In its latest release, the agency said the upgrade reflects Kuwait’s accelerating progress on fiscal and economic reforms under its long-term Vision 2035 blueprint.
The rating agency highlighted the passing of a key “financing and liquidity law” in March as a pivotal moment, which has diversified the government’s funding sources and reduced long-standing uncertainty over its budget financing.
“The upgrade reflects Kuwait’s fiscal reform momentum and reduced fiscal funding constraints,” the agency stated. It pointed in particular to Kuwait’s successful return to international debt markets in October with an $11.25 billion bond issuance — its first since 2017 — which was oversubscribed by 2.5 times.
Despite forecasting continued high fiscal deficits, averaging 7 percent of gross domestic product from 2025 to 2028 due to assumptions of lower oil prices, the agency emphasized Kuwait’s strong financial buffers.
