Rwanda's economic recovery is facing headwinds with external pressures and rising global inflation posing risks to the economy and policymaking. Fiscal and external deficits will only gradually moderate over the next three years, leaving public and external debt elevated. Rwanda retains access to concessional financing on favorable terms, which will keep debt servicing costs manageable and lower than those of similarly rated peers. We therefore affirmed our long- and short-term sovereign credit ratings on Rwanda at 'B+/B'. The outlook remains negative. On July 29, 2022, 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 rising global inflationary pressures and large twin deficits could exacerbate external
