Moderate public and external debt levels. Strong relations with donors. Prudent policy mix that, along with ongoing investment, supports good growth prospects. Untested democratic processes in the event of a transition of power. Low level of economic development and significant long-term development challenges. A high level of donor dependence. The ratings on the Republic of Uganda reflect our view of the country's track record of relative political stability, lower general government debt levels than peers', strong relations with donors, and good growth prospects. The ratings are constrained by the sovereign's low GDP per capita, dependence on donor funds, significant development challenges, its susceptibility to balance of payments pressures, and intermittent high inflation. Uganda faced macroeconomic challenges in 2011. Owing to
