Rating agencies such as S&P are independent institutions with international credibility and expertise to measure the credit worthiness of a country by evaluating their ability to repay with interest debts to creditors, to avoid the likelihood of defaulting.<\/p>\n
Such analyses of the rating agencies are important reference points used by investors and development partners for strategic decision making.<\/p>\n
S&P\u2019s latest rating ofRwanda said that it would take a positive rating action if Rwanda\u2019s economic performance was materially stronger than its projections and compared with peers.<\/p>\n
The 2015-2016 balance-of-payments shocks forced Rwanda to implemented external adjustment policies supported by an 18-month International Monetary Fund (IMF) standby credit facility (SCF) of $204 million. This has partly helped the current account deficit to decrease by more than half to around 7% of GDP in 2017, from almost 16% in 2016.<\/p>\n
S&P projected that the current account balance will gradually decline from 2019, notwithstanding the upcoming import-heavy projects, such as construction of the new Bugesera airport. It further anticipated that upcoming investment projects, higher exports and consumption will support stronger medium-term growth prospects.<\/p>\n
However, S&P long-term rating on Rwanda was unchanged and remained at ‘B’, reflecting low GDP per capita levels of less than $1,000 and the debt accumulation to fund infrastructure projects. The rating reflects their assessment that the government will keep net debt levels moderate at around 45% of GDP by 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Global rating agency Standard & Poor\u2019s (S&P) has reviewed Rwanda’s economic outlook from stable to positive and kept unchanged its long-term rating on Rwanda at \u2018B\u2019, according to a statement released on Friday.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[75],"byline":[170],"hashtag":[],"class_list":["post-37999","post","type-post","status-publish","format-standard","hentry","category-news","tag-homenews","byline-igihe"],"bylines":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"contributors":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/37999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=37999"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/37999\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=37999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=37999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=37999"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=37999"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=37999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}