Fitch Ratings has for the first time rated Development Bank of Rwanda (BRD) at B+, reflecting the bank’s stable outlook.

The rating agency reflects BRD’s relative vulnerability to default on its financial obligations.

The rating also demonstrates BRD’s ability to raise external financing in case of need.

"BRD’s ratings reflect Fitch’s view of the Rwandan authorities’ high propensity to provide extraordinary support to the bank, if required,” the agency said in a statement.

Officials at BRD say the rating underlines the institution’s standing compared to the best banking standards and practices, and further validates recent improvements, growth prospects and sustained financial stability.

The rating, they say, will also play a major role in strengthening BRD’s capability to attract new strategic financial partners to enable it to play a more prominent role in the economy.

The Bank’s Chief Executive Officer, Kampeta Sayinzoga, said in a statement shared on Wednesday that the rating is attributed to the support the bank has received from its shareholders.

"The BRD team is working relentlessly to live up to the expectations of its shareholders and ensure productive use of capital,” she noted.

This rating, she added, will also be instrumental in supporting our upcoming effort to diversify our capital base in the medium term.

Fitch particularly praised the Bank’s "unique business model” which it said would be difficult to be replicated by other domestic financial institutions.

BRD is 97 per cent owned by the Government through Agaciro Development Fund which owns 55 per cent stake in the bank and Rwanda Social Security Board which owns 42 per cent stake.

It has recently benefited greatly from several capital injections which have strengthened its ability to deliver on its ambitious developmental objectives.

Last year, the Government recapitalised BRD Rwf23 billion  in a move aimed to increase the lender’s ability to fund the country’s ambitious development programme.