Kuwait's Credit Rating Confirmed by Moody's
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SUBSCRIPTION SUNDAY, MAY 15, 2016 SHAABAN 8, 1437 AH www.kuwaittimes.net Abolish 153 Dragic on Guardiola signs Barcelona win founder speaks fire as Heat off at Bayern La Liga title about campaign’s scorch with German with Suarez goals, progress4 Raptors16 league19 title hat-trick20 Kuwait’s credit rating Min 25º Max 42º confirmed by Moody’s High Tide 07:33 & 18:12 Low Tide Agency assigns negative outlook over concerns 00:38 & 12:55 40 PAGES NO: 16874 150 FILS KUWAIT: Moody’s has confirmed the Aa2 ratings of Kuwait, the United Arab Emirates and Qatar but Anti-Israel cartoon contest opens in Tehran assigned negative rating outlooks, while it downgraded the ratings of Saudi Arabia (to A1 stable), Bahrain (to Ba2 negative) and Oman (to Baa1 stable). In its online TEHRAN: Iranians staged an international contest for ratings for the GCC countries, the rating agency said the cartoons depicting the Holocaust yesterday but insist- confirmation of Kuwait’s Aa2 rating reflects Moody’s ed the event was aimed at criticizing alleged Western view that, despite the negative effect of a protracted double standards regarding free expression and not at period of low oil prices on the economy, government denying the Nazi genocide. The event was neverthe- finances and external strength, the state’s overall credit less likely to shock many around the world and could profile remains consistent with an Aa2 rating. embarrass Iranian President Hassan Rouhani and oth- The decision to assign a negative outlook reflects er moderates who have tried to improve ties with the Moody’s view that there remain material uncertainties West following last year’s landmark nuclear deal. around the Kuwaiti government’s ability to effectively Iran has long backed armed groups committed to implement its fiscal and economic reform program, Israel’s destruction and its leaders have called for it to which has the stated objective of diversifying and be wiped off the map. Iran has also criticized depic- enhancing the economic base and its budgetary rev- tions of Prophet Muhammad (PBUH), arguing that enues. According to Moody’s, the Kuwaiti government’s Western countries tolerate expression deemed offen- inability to do so would be a signal of a level of institu- sive to Islam but not the questioning or denial of the tional weakness that is inconsistent with a Aa2 rating. Holocaust. “We have never been after denying of the Kuwait’s long-term and short-term foreign-currency Holocaust or ridiculing its victims,” contest organizer bond and deposit ceilings remain at Aa2 and Prime-1, Masuod Shojai Tabatabaei said in a speech opening respectively. Kuwait’s long-term local-currency country the event. “If you find a single design that ridicules vic- risk ceilings also remain at Aa2. The decision to confirm tims or denies, we are ready to close the exhibition,” he the government of Kuwait’s Aa2 rating reflects Moody’s said. “Jews who lost their lives in the Holocaust were assessment that the negative impact of the low oil price subject to oppression by Nazis.” is manageable because of Kuwait’s very robust govern- Nazi Germany and its collaborators killed 6 million ment balance sheet, characterized by low levels of gov- Jews during the World War II-era genocide. The denial ernment debt and large domestic and external assets; or questioning of the genocide is widespread in the its very high per capita wealth; and its very low fiscal Middle East, where many believe it has been used as a and external breakeven oil prices, which limit the dete- pretext for the creation of Israel and to excuse Israel’s TEHRAN: An Iranian woman looks at anti-Israel cartoons displayed at the second international exhibition rioration in fiscal and current account balances. Continued on Page 13 of drawings and cartoons on the Holocaust yesterday. — AFP Continued on Page 13 News Sykes-Picot still vilified 100 years on in brief Kuwait: Iran, others Deal that forever must freeze output DUBAI: Kuwait’s deputy foreign minister Khaled Jarallah said oil exporting countries must freeze pro- changed Mideast duction and the market could not support a production increase from Iran, state PARIS: On May 16, 1916, a secret pact Hussein, in which Britain’s High news agency KUNA carved up the floundering Ottoman Commissioner in Egypt, Henry reported yesterday. Empire into spheres of British and McMahon, dangled the prospect of an “There is no choice but French interest, foreshadowing the independent Arab state. to freeze production,” future map of the Middle East and, say Britain and France were well estab- KUNA quoted Jarallah as critics, sowing the seeds of many of its lished in the region - France through telling Japanese news problems. The Sykes-Picot agreement economic and cultural influence in the agency Jiji press while he between the British and French govern- area known as the Levant, and Britain in and acting oil minister ments for partitioning the empire’s Egypt, which London had occupied Mark Sykes Francois Georges-Picot Anas Al-Saleh attend a Arab provinces was struck at the height since 1882. Pointing to a map before Kuwait-Japan business of World War I, as the two allies and him to designate areas of interest, Sykes PARIS: The Sykes-Picot Agreement, signed foresaw the creation of “one or several seminar in Tokyo. Asked Russia grappled with Turkey and its said: “I should like to draw a line from a century ago on Monday, drew the bor- Arab states” in the shared areas under about Iranian production backers, Germany and Austria-Hungary. the ‘e’ in Acre (on the Mediterranean ders of the modern-day Middle East from French and British influence. The agree- policy, Jarallah said, “Iran Khaled Al-Jarallah In legal terms, the deal - named coast) to the last ‘k’ in Kirkuk (in mod- the ruins of the Ottoman Empire, but has ment makes no mention of “a Jewish state should learn from the after a pair of British and French diplo- ern-day Iraq).” Territory north of the line often been blamed for many of the or of Lebanon”, the researcher said. market ... the market does not give an opportunity to mats, Sir Mark Sykes and Francois would come under French protection, region’s problems. Two historians, in inter- Palestine and Mosul - seized by the increase production.” OPEC members and other oil Georges-Picot - only remained on directly or indirectly, and territory to the views with AFP, address questions about Islamic State jihadist group in Iraq - were exporters failed in a meeting in the Qatari capital Doha paper. But its geopolitical impact south would be controlled directly or the secret deal that are still being asked supposed to be part of the areas under on April 17 to reach an agreement on freezing their out- would resound for decades. indirectly by the British. today. Is the modern-day Middle East the French influence. But France renounced put to rebalance the global oil market. Clandestine negotiations started in France would take control of a “Blue direct descendant of this agreement? those areas in 1918 under pressure from Nov 1915, amid parallel moves to Zone” that included Lebanon, the Henry Laurens, a professor at the presti- Britain. It also renounced Cilicia (modern- establish a new front during the war Syrian coast and parts of what is now gious College de France university, said day Turkey) when nationalist Turks liberat- 64 killed by lightning and counter the declaration of a holy Turkey. Within a “Red Zone,” Britain the Sykes-Picot borders were largely rene- ed Anatolia between 1919 and 1922. The across Bangladesh war, or jihad, by the German-backed would get southern Mesopotamia, or gotiated between 1916 and 1922, so the original agreement was named after the DHAKA: More than 60 people have been killed by Ottoman sultan-caliph. As part of Iraq including Baghdad, along with the initial map “bears no resemblance” to the two diplomats who drew them up, lightning over the past two days during tropical those moves negotiations took place Mediterranean ports of Haifa and Acre. current situation. Sykes-Picot is often Britain’s Mark Sykes and Francois Georges- storms across Bangladesh, local media said yester- with the then ruler of Makkah, Sharif Continued on Page 13 accused of having divided up the Arab Picot of France. day. Most of the 64 lightning deaths since world, but in fact the original text only Continued on Page 13 Thursday have occurred in rural Bangladesh, where farmers are busy with the current harvest- ing season, leading Bengali-language newspapers Hezbollah says extremists Prothom Alo and Samakal reported. The reports of casualties could not be verified independently, killed commander in Syria with lightning deaths not usually monitored by government agencies. Experts say increased deforestation and people’s exposure to metal BEIRUT: Hezbollah said yesterday its top Damascus, rebels control a portion of the equipment like cellphones are the reasons behind military commander, whose death it Eastern Ghouta suburb, which has experi- lightning deaths in Bangladesh. announced on Friday, was killed in Syria by enced fighting for most of the conflict now Islamist artillery fire and not by an Israeli air in its sixth year. strike as one member of the Lebanese “There has been no recorded shelling or Menem tells court son movement had said. “Investigations have firing from the Eastern Ghouta area onto showed that the explosion, which targeted Damascus International Airport for more was killed by Hezbollah one of our bases near Damascus than a week,” Syrian Observatory for BUENOS AIRES: Former Argentine President Carlos International Airport, and which led to the Human Rights director Rami Abdulrahman Menem said Friday he believes his son was killed by the martyrdom of commander Mustafa told Reuters.