Uganda Development Bank receives highest rate one month after funds boost

UDB has received the National Long-term Rating of ‘AAA (uga)’ with a Stable Outlook from the world-renowned international credit rating agency Fitch Ratings. At the same time, the Bank was also assigned a Long-Term Issuer Default Rating (IDR) of ‘B+’ with a negative outlook, by the same national scale.

"The ‘AAA (uga)’ rating by Fitch is a testament to the Bank’s robust institutional health and lends credence to the overall sustainability of the Bank. We are grateful to our various stakeholders, but more especially the Ugandan government, for the ongoing support that ensures the Bank continues to deliver its mandate,” said UDB Managing Director, Patricia Ojangole.

In June, UDB received Sh85 billion from the national budget which it promised to invest to "scale up our interventions that aim to foster a robust and sustainable private sector".

READ HERE: UDB receives sh85b, commits to scale up socio-economic interventions

In the same period, the bank also promised to upset the economic hold private banks have over Uganda.

READ HERE: UDB promises to upset private banks' economic influence with Shs85 billion boost

Fitch conducts a comprehensive assessment of a participating institution against a common set of parameters, following from which, it assigns a credit rating. Investors use these credit ratings as a guide as to which investments will not default and subsequently yield a solid return.