SYDNEY, Jan 17 (Reuters) - Credit ratings agency Standard & Poor’s on Friday downgraded Uganda’s sovereign credit rating to B from B+, with a stable outlook.
S&P also affirmed its ‘B’ short-term and local currency sovereign credit ratings.
The downgrade reflects S&P’s view that Uganda’s fiscal position has weakened relative to previous forecasts.
“We now forecast a higher fiscal deficit of 6.9 percent in the 2013-2014 fiscal year. Revenue increases have been lower than we expected, donors have suspended general budget support, and expenditure is rising,” S&P said in a statement.