Moody’s upgrades Rwanda’s outlook on reduced risks from DRC conflict
Moody’s, a ratings agency, raised its outlook for Rwanda from “negative” to “stable” on Friday, pointing to lower chances of a conflict with the Democratic Republic of the Congo, especially with relation to foreign exchange outflows.
A peace deal was struck in June as a result of the ongoing negotiations between Rwanda and the Democratic Republic of the Congo, which are being mediated by the US and supported by other regional and international allies.
“External financial assistance for Rwanda has remained strong over the past few months and will likely continue to support its credit profile,” according to a statement from Moody’s.
According to the U.S. State Department, Rwanda and Congo recently reached an agreement on a framework for regional economic integration that includes cooperation in areas such as public health, national parks, infrastructure, energy, and mineral supply chains.
Additionally, the ratings agency maintained the nation’s long-term “B2” local and foreign currency rating.
According to Moody’s, Rwanda’s credit difficulties have been mitigated by its robust economic growth, low danger of financial collapse as a result of its debt structure, and significant backing from development partners.
According to Moody’s, Rwanda’s credit portfolio is more resilient because its institutions and governance are more robust than those of other comparable nations.
