Moderate public and external debt levels. Prudent policy mix that, along with ongoing investment, supports good growth prospects. Strong GDP growth and medium-term oil-sector prospects. Untested democratic processes in the event of a transition of power. Weakening donor relations and high levels of corruption. Low income levels. High level of donor dependence. 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
