Amid COVID-19-induced economic and fiscal pressures, Rwanda's public sector and external debt has risen. We are affirming our 'B+/B' long- and short-term sovereign credit ratings on Rwanda. The negative outlook reflects that higher-than-expected twin (external and fiscal) deficits could further increase fiscal leverage and weaken the country's external balance sheet. On Feb. 5, 2021, S&P Global Ratings affirmed its 'B+' long-term and 'B' short-term sovereign credit ratings on Rwanda. The outlook remains negative. The negative outlook reflects that Rwanda's large current account deficits could weaken the external balance sheet more than we currently expect, particularly if the COVID-19 pandemic puts a deeper strain on exports, tourism, and inward remittances for longer than we expect. The outlook also indicates that large
