On Dec. 9, 2008, Standard&Poor's Ratings Services assigned its 'B+' long-term and 'B' short-term foreign and local currency sovereign credit ratings to the Republic of Uganda. At the same time, a Transfer&Convertibility assessment of 'BB' was assigned. The outlook is stable. With this new rating, Standard&Poor's now rates 121 sovereign governments worldwide. The ratings are constrained by Uganda's low economic development, its dependence on donor funds, the lack of a track record of democratic government handovers, and the long-term challenges stemming from rapid population growth. They are supported by relatively unlevered fiscal and external balance sheets following debt relief, good fiscal-monetary policy coordination, strong relations with donors, and good growth prospects on the back
