Moody’s changes outlook on Uganda’s B1 rating to negative from stable. The key drivers for the negative outlook including the following:
- Deteriorating fiscal and debt metrics, driven by high capital spending and rising debt-servicing expenditures;
- A continued weakening in Uganda’s external payments position, as evidenced by the large depreciation in the Ugandan shilling; and
- The expected increase in inflation and reduced growth prospects, potentially diminishing a key source of historical support to sovereign credit quality.