S&P cuts Uganda outlook

Standard & Poor's said it affirmed its B+ long-term and B short-term sovereign credit ratings on the Republic of Uganda.

The agency revised the transfer and convertibility assessment to B+. At the same time, the agency revised the outlook to negative from stable.

S&P said the ratings are constrained by Uganda's low GDP per capita, heavy dependence on donor funds, significant development challenges and susceptibility to balance of payments pressures and intermittent high inflation.

The ratings are supported by the agency's view of Uganda's track record of relative political stability, comparatively low general government debt burden, and traditionally strong, albeit currently troubled, relations with donors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.