Moody’s: Kuwait could Witness a Downgrade of its Aa2 Long-term Issuer Rating

Moody's Investor Service (Moody’s) has positioned Kuwait under review for a downgrade of the country's sovereign long-term issuer ratings, significantly limiting the ability of the Kuwait Government to repay its debts.

Moody’s stated that a downgrade was being considered due to the impacts of the significant decline in oil prices, amidst the on-going COVID-19 crisis. Given that Kuwait’s economy is almost entirely dependent on oil, falling oil prices have caused a great deal of uncertainty over the Government’s ability to access adequate sources of finance. 

The global oil industry has been facing an emerging crisis over the past month with Saudi Arabia increa...