Fitch affirms Uganda

Fitch Ratings said it affirmed Uganda's long-term foreign- and local-currency issuer default ratings at B, along with its short-term issuer default rating and country ceiling at B.

The outlook is positive.

Uganda's two billion barrels of discovered oil will have a large positive impact on its growth potential and balance of payments and public finances, Fitch said.

However, the commercial development of the oil has stalled temporarily, pending the resolution of a tax dispute with the exploration companies and finalization of plans to build a refinery, the agency said.

Failure to decisively settle these issues would push the production timeline back further and dampen the positive momentum, Fitch said.

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