The ratings on the Republic of Rwanda are constrained by its low per capita income, estimated at around US$640 in 2012, which is still lower than peers despite almost tripling since 2000. The structural current account deficits, which reflect its narrow and volatile export base, also constrain the ratings. Lingering political risks including the recent resurgence in regional tensions are also a ratings weakness. The ratings are supported by the government's adherence to sound macroeconomic policies, which have helped underpin robust growth and effective reforms. Per capita income has increased by at least 4% each year over the last decade and we believe it will continue at this rate. Rwanda has also reduced poverty: the rate declined to 45% in
