On Sept. 8, 2017, S&P Global Ratings affirmed its 'B/B' long- and short-term foreign and local currency sovereign credit ratings on the Republic of Rwanda. The outlook is stable.
S&P Global ratings cites Rwanda's moderate pace of real economic growth in the near term due to structural and transitory factors, while current account deficits remain structurally high as the reasons for affirming B/B ratings on Rwanda. However, S&P projects medium-term growth prospects remaining strong, government debt and its servicing remaining moderate relative to peers, while monetary flexibility is improving.
S&P indicates that stable outlook balances the strong growth prospects and moderate debt burden against the risks of weak external metrics over the next 12 months. It could lower the ratings if, in contrast to its present expectations, Rwanda's current account deficits do not narrow, leading to a sustained additional external debt accumulation or a decline in net foreign exchange reserves. S&P could raise the ratings if Rwanda's growth or fiscal performance were to materially exceed its baseline forecasts (GDP growth of 6% and, reduction in the fiscal deficit and improvement in domestic revenues).