In our view, the implementation of large infrastructure projects part-funded by the government has caused a temporary deterioration in Uganda's fiscal position that will last until 2018. Economic growth remains strong, inflation pressures are receding, the Ugandan shilling is stabilizing, and the government's domestic financing costs have declined. We are therefore affirming our 'B/B' ratings on Uganda. The stable outlook balances the risks from a temporary worsening in the government's fiscal position due to spending on public-sector infrastructure projects against our expectation that the country's fiscal and external metrics will improve once the projects are completed, triggering an increase in the productive capacity of the economy. On July 8, 2016, S&P Global Ratings affirmed its 'B/B' long- and short-term foreign
