As Rwanda’s financial sector expands, stakeholders are looking for ways of improving access to cheaper and long-term credit.
One such ways is for enterprises to embrace credit rating–an evaluation of the ability of a company or government to pay back debt and the likelihood of default.
“Now the next step is to see how we can move to another level of professionalizing so that we can request for ratings because the more you are rated, the more you can raise money cheaply,” says Claver Gatete, the governor National Bank of Rwanda.
He spoke during a meeting organized by the Capital Markets Authority to discuss options of expand access to long-term loans to the private sector.
“If there is something that is very crucial for any economy to grow or for any market to finance the economy, [it is] credit rating,” Gatete added.
Bank of Kigali is the only local company that rated.
“Now the next step is to see how we can move to another level of professionalizing so that we can request for ratings because the more you are rated, the more you can raise money cheaply.”
Not only does credit rating help in raising money, it also leads to better corporate governance through disclosure of strength and weaknesses.
“It enhances management services because the rating agency would be able to point out areas that require improvement,
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