OVERVIEW Geopolitical risks associated with the M23 rebel group in Rwanda have dissipated following the group's recent defeat and disintegration. Fiscal consolidation is on track, with deficits narrowing, although Rwanda's external position is still weak. Consequently, we are revising our outlook on Rwanda to positive from stable and affirming our 'B/B' ratings on Rwanda. The positive outlook reflects a one-in-three possibility that we may upgrade Rwanda within the next year. RATING ACTION On Sept. 12, 2014, Standard&Poor's Ratings Services revised its outlook on the Republic of Rwanda to positive from stable. At the same time, we affirmed our 'B/B' long- and short-term foreign and local currency sovereign credit ratings on Rwanda. RATIONALE We consider that Rwanda's fiscal consolidation
