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Kuwait Credit Rating Cut for Second Time in Two Years by S&P

  • Economy will grow by only 0.5% in real terms in 2021: S&P
  • Government has been unable to borrow since its debut Eurobond
Photographer: Tasneem Alsultan/Bloomberg

Kuwait was downgraded by S&P Global Ratings for a second time in less than two years after a fall in oil revenue and increased spending pressured the Persian Gulf nation’s fiscal outlook.

The sovereign credit rating was cut one level to A+ from AA-, the fifth-highest investment-grade level, according to a statement Friday. S&P now rates Kuwait two notches lower than Fitch Ratings and on par with Moody’s Investors Service, which lowered its own assessment of the country last year for the first time . S&P’s outlook for Kuwait is negative.