Thursday 19/March/2026 – 11:14 AM
The Central Bank of Kuwait announced that the global credit rating agency Standard & Poor’s It affirmed the sovereign rating of the State of Kuwait, keeping the long-term rating at AA-level, and the short-term rating at A-1+, with a stable outlook.
Stabilizing Kuwait’s credit rating despite attacks on oil refineries
The bank explained, in a statement to Kuwait News Agency KUNA, that the agency indicated that the huge financial assets owned by Kuwait represent a strong line of defense in the face of the repercussions of regional tensions, anticipating a decline in risks that may threaten vital infrastructure, including oil facilities.
The agency indicated that the stable future outlook reflects its confidence in the ability of large financial reserves to provide sufficient financial and external space, which helps absorb the effects of geopolitical fluctuations, even in the event of temporary disturbances in oil production and exports.
In terms of economic growth, the agency expected real GDP growth to slow to less than 1% in 2026, compared to about 2% in 2025, as a result of reducing oil production by more than half since the beginning of the tensions, in addition to the disruption of some exports.
As for public finances, the agency expected the budget deficit to rise to about 17% of GDP in fiscal year 2026, compared to 8% in the previous year, affected by the decline in oil production and the continued rise in public spending.
Regarding the banking sector, the agency ruled out the emergence of emergency obligations on the government as a result of the banks’ conditions, noting the growth of the loan portfolio by 8.5% during the year 2025, driven by recent reforms and the expansion of banking activity.
She also pointed out the continued strength of asset quality, as the percentage of non-performing loans at the eight largest banks reached about 1.5% by the end of 2025, stressing at the same time that Kuwaiti banks maintain strong positions of net foreign assets, which enhances their ability to face any potential pressures resulting from the exit of capital in the event of escalation of tensions.
In another context, the Kuwait Petroleum Corporation announced today, Thursday, March 19, that one of the operational units in the Mina Al-Ahmadi refinery of the Kuwait National Petroleum Company was attacked by a drone, and one of the operational units in the Mina Abdullah refinery of the National Petroleum Company was also targeted by another drone.
The Corporation explained, in an official statement, that the two incidents resulted in a limited fire breaking out inside the affected units, without any injuries recorded among the workers. The two fires were dealt with and controlled quickly, in accordance with the highest approved safety standards and procedures, ensuring the safety of workers and facilities.
