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30-10-12

Kuwait's AA rating may be lowered if protests climb: Fitch

(MENAFN) Fitch Ratings warned that Kuwait's AA sovereign credit rating could be revised down if political protests increase further, with a stable outlook, Reuters reported. The credit rating firm said recent popular protests over a change in the election law decreed by the ruling emir "suggests a radicalisation of the political scene". It added that prolonged political stalemate could also undermine Kuwait's rating through its impact on the economy. Kuwait's Emir Sheikh Sabah Al-Ahmad Al-Sabah dissolved parliament earlier this month to pave the way for a new election which many hoped would end a persistent political turmoil that had held up development projects in the major oil producer. Opposition political leaders, who won a parliamentary majority in a February poll, condemned the move, and saw it as an attempt to undermine their chances ahead of the December 1 vote. They are also worried that authorities would try to push through new voting rules that could help pro-government candidates. Kuwait's rating depends on its strong sovereign and external balance sheet, Fitch said, citing estimated net foreign assets of USD323 billion at the end of last year. That is equivalent to 191 percent of gross domestic product.

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