Owing to the alleged misappropriation of some donor funds in late 2012, Uganda's traditionally strong relations with donors continue to be strained and may undermine the country's grant and concessional financing. In addition, strong import growth and reduced bilateral donor grants have affected Uganda's fiscal and external sector balance sheets. The outlook on our long-term sovereign credit ratings on Uganda remains negative because there is at least a one-in-three probability that could lower the ratings within the next six to 12 months if Uganda's fiscal and external balance sheets deteriorate further. We are affirming our 'B+/B' long- and short-term foreign and local currency sovereign ratings on Uganda. On July 19, 2013, Standard&Poor's Ratings Services affirmed its 'B+' long-term
