Standards & Poor’s Financial Services (S&P) has affirmed its “AA” long-term and “A-1+” short-term foreign and local currency credit ratings on Kuwait, the ratings agency said in a note on Friday. “The stable outlook reflects our expectation that Kuwait's overall fiscal and external balance sheets will remain strong, backed by a significant stock of financial assets,” S&P said. “We expect these strengths to offset risks related to the current low price environment, Kuwait's undiversified oil economy, political risks, and geopolitical tensions in the region.” S&P added that the ratings could be lowered if Kuwait's wealth levels are impacted by a continued fall in oil prices and if Kuwait's political stability deteriorates. Meanwhile, ratings would be raised if political reforms were to enhance institutional effectiveness and improve long-term economic diversification amid forecasts for a recovery in oil prices. (Argaam)