UGANDA: Fitch Ratings affirmed Uganda’s long-term foreign-currency issuer default rating (IDR) at B+ with a negative outlook on 8 September.
In its statement, the rating agency said the negative outlook reflects Uganda’s weak external liquidity position and challenges to its access to external concessional financing and grants related to concerns about democracy, human rights, and corruption, further heightened by the passing of the Anti-Homosexuality Act (AHA) in 2023.
Fitch said that the impact of the act on funding in the fiscal year ending June 2024 (FY24) appears manageable as the majority of World Bank financing included in the government budget had already been approved by the board. Meanwhile, high government interest payments and rising external debt service costs are set to exacerbate financing and liquidity pressures. (ETM)