Moody’s Investors Service has revised Rwanda’s credit outlook from negative to stable while affirming its long-term issuer rating at B2, signaling confidence in the country’s economic resilience and policy management.
The ratings agency cited a reduction in key downside risks as the main driver behind the outlook upgrade.
This improvement follows ongoing, internationally brokered discussions between Rwanda and the Democratic Republic of Congo (DRC), which have resulted in a peace agreement and a framework for future economic cooperation.
Moody’s indicated that these developments significantly reduce the likelihood of a full-scale regional conflict that could disrupt Rwanda’s access to concessional financing.
Moody’s also highlighted Rwanda’s strong growth prospects and solid track record of effective policy execution as core reasons for maintaining the B2 rating.
The structure of government debt, combined with consistent access to concessional funding from development partners, continues to limit near-term liquidity risks.
While the rating accounts for fiscal and debt risks linked to Rwanda’s large investments in the aviation sector, Moody’s noted that these risks are mitigated by the government’s capacity for fiscal adjustment and recent tax reforms that boost domestic revenue and fiscal flexibility.
“The stable outlook reflects that risks are now broadly balanced,” Moody’s said.
The agency expects that regional tensions will not escalate significantly and that Rwanda’s institutional strength, along with proven access to external financing, will continue to support its credit profile.
This revision to a stable outlook marks a positive signal to investors and underscores Rwanda’s efforts to maintain macroeconomic stability while navigating regional geopolitical challenges.
