Moody’s changes Uganda view to negative

Moody's Investors Service said it changed the rating outlook on Uganda's B1 issuer rating to negative from stable and affirmed the rating.

Moody’s said the key drivers for the negative outlook are: (a) Deteriorating fiscal and debt metrics, driven by high capital spending and rising debt-servicing expenditures; (b) a continued weakening in Uganda's external payments position, as evidenced by the large depreciation in the Ugandan shilling; and (c) the expected increase in inflation and reduced growth prospects, potentially diminishing a key source of historical support to sovereign credit quality.

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