Ratings agency Moody’s on Friday upgraded its outlook on Rwanda to “stable” from “negative”, citing reduced risks from a conflict with the Democratic Republic of the Congo, particularly regarding foreign exchange inflows.
The ongoing discussions between the Democratic Republic of the Congo and Rwanda, mediated by the United States and backed by other international and regional partners, have helped ease the tensions between the two countries, leading to a peace agreement signed in June.
“External financial assistance for Rwanda has remained strong over the past few months and will likely continue to support its credit profile,” said Moody’s in a statement.
Rwanda and Congo recently agreed on an outline for a regional economic integration framework, which includes elements of cooperation on energy, infrastructure, mineral supply chains, national parks and public health, according to the U.S. State Department.
The ratings agency also affirmed the country’s long-term local and foreign currency rating at “B2”.
Moody’s said that Rwanda’s strong economic growth, low risk of running out of money due to its debt setup, and solid support from development partners has helped balance its credit challenges.
Rwanda’s institutions and governance are also stronger than other similar countries, adding resilience to its credit portfolio, Moody’s said.
