Rwanda's improved fiscal performance and robust economic growth has eased its vulnerability to fiscal and debt risks. Although its external imbalances remain high, its debt servicing costs are significantly below those of similarly rated peers, because of its access to cheap, concessional external funding. Inflation is high but moderating, which will test the authorities' monetary policy credibility and could hinder the country's transition to a more-substantial economic recovery. We revised our outlook on Rwanda to stable from negative, reflecting the easing of fiscal pressures, strong growth prospects, and low debt servicing costs. We also affirmed our long- and short-term sovereign credit ratings on Rwanda at 'B+/B'. On Jan. 27, 2022, S&P Global Ratings revised its outlook on Rwanda to stable
