Fitch affirms Kuwait

Fitch Ratings said it affirmed Kuwait's long-term foreign- and local-currency issuer default ratings at AA, along with its country ceiling at AA+ and short-term foreign-currency rating at F1+.

The outlook is stable.

The ratings reflect its strong sovereign and external balance sheets that will continue to strengthen, even if oil prices fall from their current high, Fitch said.

But the high reliance of the Kuwait economy on oil increases volatility and risk, despite the mitigation afforded by large financial assets, the agency said.

Success in diversifying the economy and developing the private sector would be positive for the ratings, Fitch said.

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