Rwanda's twin deficits (fiscal and external) are forecast to slowly decrease, but risks to our base-case expectations persist. We are affirming our 'B+/B' long- and short-term sovereign credit ratings on Rwanda. The negative outlook reflects that a slower-than-expected economic recovery could lead to wider fiscal and current account deficits, further weakening the government's and country's balance sheets. On Aug. 6, 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 investment and debt-driven economic growth model and structurally large current account deficits could exacerbate debt vulnerabilities more than we expect. We could lower the ratings over the next 6-12 months if the country's external
