TOKYO, May 30 (KUNA) -- Dagong Global Credit Rating Co., Ltd., China's leading credit rating agency, on Wednesday assigned a local and foreign currency sovereign credit rating of AA to Kuwait, each with a stable outlook, the official Xinhua News Agency reported.

"The rating reflects the country's robust fiscal and foreign exchange strength, as well as its complex geopolitical environment and economic vulnerability," Dagong said, according to the report.

It is the first time that Dagong rates Kuwait's sovereign credit status. AA is the third highest investment grade on its scale of 19 and the same level as Saudi Arabia.

Taking high international energy prices and steady demand from the country's main trading partners into consideration, Dagong predicted that Kuwait's economic growth will hit 6.6 percent and 6.3 percent, respectively, in 2012 and 2013.

"The limited effects of economic diversification will not reduce the country's vulnerability to sudden deterioration due to tensions in Iran," Dagong said.

The rating agency said Kuwait's ample fiscal power, including a budget surplus that accounts for 17 percent of its GDP, will be further strengthened by high energy prices, while a persistent current account surplus will guarantee the repayment of external debt.

Founded in 1994, Dagong is a specialized credit rating and risk analysis research institution as well as a key credit information and credit solution service provider in China. As the nation's largest and most normalized credit rating agency, Dagong has all franchise qualifications granted by the Chinese government, and is an official institution providing credit rating services for all bond issuers in China.