Credit rating agency Standard & Poor’s (S&P) has lifted Rwanda’s sovereign credit outlook from negative to stable, now grading it at B.
According to the agency the country’s external position has further weakened in the first six months of 2016.
The agency further added that it expects the country’s current account deficit will widen to 16 per cent of GDP in 2016 and net external debt level will keep increasing Outlook balances potential for stronger-than anticipated economic growth or fiscal performance against risks of Rwanda’s external metrics weakening.
According to Trading Economics website, Standard & Poor’s credit rating for Rwanda stands at B with stable outlook. Moody’s credit rating for Rwanda was last set at B2 with stable outlook.
Fitch’s credit rating for Rwanda was last reported at B+ with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Rwanda thus having a big impact on the country’s borrowing costs.