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Moody's downgrades Kuwait over liquidity risks

A Kuwaiti man stops at a currency exchange shop in Kuwait City on 7 September 2020 [YASSER AL-ZAYYAT/AFP/Getty Images]
A Kuwaiti man stops at a currency exchange shop in Kuwait City on 7 September 2020 [YASSER AL-ZAYYAT/AFP/Getty Images]

Moody’s Investors Service on Tuesday downgraded Kuwait by two levels to A1 citing the increase in the government’s “liquidity risks”.

The credit rating company said it expects the Kuwaiti government to need to borrow 27.6 billion dinars ($90 billion) to meet its funding requirements between the current fiscal year and the fiscal year ending March 2024.

Going on to revise the Guld state’s outlook to stable.

The report criticised the Kuwaiti executive and legislative authorities’ failure to find financing solutions to fill the state’s budget deficit.

In August, Kuwait’s Finance Minister Barak Al-Shaitan said the country needs to borrow 20 billion dinars ($65 billion) to fill the budget deficit.

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