Standard & Poor’s (S&P) has given Rwanda a B+/B credit rating on account of the country’s current political and economic stability and in the foreseeable future. The positive rating, by the American independent credit rating agency, is the latest by the firm.
“Our current B+ rating and stable outlook incorporate our belief that the 2017 transition will be managed smoothly and will not weaken the country’s institutional framework or result in civil unrest,” the agency said in a statement. Rwanda is scheduled to have presidential elections in 2017.
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. Opinions and analyses of rating agencies are important reference points used by investors and development partners for strategic decision making.
S&P’s latest verdict on Rwanda is seen as an endorsement of the central bank’s macroeconomic management policies on which the economy is running. Central bank governor John Rwangombwa said “the rating is an independent verdict on how our country and, more so, the economy is well-managed; it gives confidence to investors to invest with us.”