Fitch affirms Kuwait’s ‘AA-’ sovereign rating with stable outlook

KUWAIT CITY, Aug 8: Global credit rating agency Fitch Ratings has affirmed Kuwait’s long-term sovereign credit rating at “AA-” with a stable outlook, citing the country’s exceptionally strong financial and external position.

In a statement issued on August 7, 2026, Fitch said Kuwait’s rating reflects its substantial financial strength and strong external position. The agency expects the country’s net sovereign foreign assets as a share of GDP to increase in 2026, reaching more than 10 times the average level for countries rated “AA.”

Fitch expects regional geopolitical instability to affect Kuwait’s economic growth, particularly through changes in oil production levels. At the same time, non-oil GDP is expected to continue growing, although at a slower pace, supported by government spending on infrastructure development projects.

The agency also forecasts a slight increase in inflation during 2026 before a decline in 2027.

On public finances, Fitch expects Kuwait’s public debt-to-GDP ratio to rise over the next three fiscal years through the end of fiscal year 2028/2029. However, debt levels are expected to remain below the median for sovereigns rated “AA,” estimated at around 51.5 percent of projected GDP in 2028.

Fitch said the potential impact of continued geopolitical instability on Kuwait is expected to remain manageable because of the country’s substantial financial buffers.

The affirmation underscores Kuwait’s strong sovereign balance sheet, which Fitch considers a key factor supporting the country’s credit profile despite regional economic and geopolitical risks.