Standard&Poor's Ratings Services' ratings on the Republic of Uganda are constrained by the sovereign's low level of economic development, its dependence on donor funds, the lack of a track record of democratic government handovers, and challenges stemming from rapid population growth. The ratings are supported by relatively unleveraged fiscal and external balance sheets following debt relief; growth-supporting policies, and good growth prospects on the back of ongoing investments and long-term oil prospects. Uganda's fiscal outlook weakened in the first half of fiscal 2012/2013 (which runs from July 1, 2012, to June 30, 2013) after donors froze about US$260 million of grant support following the alleged misappropriation of about $20 million of donor grants. We estimate GDP per capita
