Rwanda will undergo a second rating by American agency, Standard & Poor’s (S&P), as a reflection of the country’s progressing economic growth through reforms that have made the economy more investor - friendly.
The decision by the government to be rated comes after Rwanda was recently upgraded to “B” class by Fitch Rating, an international credit rating agency, in recognition of its secure investment climate.
A second rating would reassure investors that Rwanda is a good country to invest in and also lead to better borrowing costs for local companies and the government, according to a communiqué from the Ministry of Finance and Economic Planning.
“It will position Rwanda to access the international capital markets through a sovereign bond and also improve local companies’ access to the capital markets,” the ministry stated.
In its rating, S&P will consider Rwanda’s economic status, transparency in the capital market, level of private and public investment flows, political stability, and foreign currency reserves, amongst others.
“Starting August 16th, Rwanda will touch base with S&P. In mid September; the agency will visit Rwanda and meet with various ministries, ambassadors and donors. Eight weeks later, an initial rating will be sent to Rwanda through the Ministry of Finance for discussion,” the statement reads.
The government expects the rating to be completed by the end of this year.
S&P is one of the world’s leading rating agencies and has covered over 120 states. It began coverage of Africa 17 years ago and currently has extensive coverage and a rating on 15 countries in the Sub-Saharan region.