Fitch upgrades Rwanda and praises "robust" growth

Aug 27, 2010

Fitch Ratings has upgraded Rwanda to a B sovereign rating and praised the growth of the country's economy.

The body has moved the nation to five steps below investment grade after seeing a marked improvement in the business environment and solid public finances, which are favourable when compared to Rwanda's peers.

Associate Director at Fitch's Sovereign Group Purvi Harlalka said the raised rating is in response to "large planned investments in physical infrastructure and continued efforts to increase competitiveness will keep growth robust and support creditworthiness".

The decision was praised by Rwanda's Finance Minister John Rwangombwa, who was quoted by the New Times as saying the move will benefit the government and the country's business community, which will have "a better chance" to access finance.

Rwanda's financial market was strengthened further earlier this week when it was announced a new bond issued by the Rwandan government raised more than three times the 2.5 billion Rwandan franc (€3.35 million) target.