The suspension of donor support in 2012 and higher expenditure have weakened Uganda's finances, and we forecast wider fiscal deficits from 2014. In addition, we expect the current account deficit to remain large and that gross external financing requirements will rise. We are lowering our long-term ratings on Uganda to 'B' from 'B+' and affirming the 'B' short-term ratings. The stable outlook reflects our view that, over the next two years, the benefits of political stability, continued infrastructure investments, and solid medium-term growth prospects in Uganda will offset the risks from fiscal and external imbalances. On Jan. 17, 2014, Standard&Poor's Ratings Services lowered its long-term foreign and local currency sovereign credit ratings on the Republic of Uganda to
