S&P upgrades Kuwait

Standard & Poor's said it raised the local- and foreign-currency sovereign credit ratings on the State of Kuwait to AA from AA-.

The short-term ratings were affirmed at A-1+.

The outlook is stable.

The transfer and convertibility assessment, which reflects the likelihood of the sovereign restricting non-sovereign access to foreign exchange needed for debt service, also was affirmed at AA+.

The upgrade is supported by Kuwait's high GDP per capita and strong external and fiscal balance sheet positions, the agency said.

These strengths comfortably balance an assessment of Kuwait's rating weaknesses, which include an ineffective political setup leading to sustained gridlock between the government and parliament and a strong dependence on hydrocarbons, S&P said.

Kuwait's public finances remain exceptionally strong, the agency said, and the general government budget has been recording surpluses at double-digit percentages of GDP for almost a decade.

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