Overview:
The Stable Outlook indicates that the bank's rating is unlikely to change in the near future, providing a vote of confidence in UDB's financial stability and resilience.
Uganda Development Bank (UDB), has retained its National Long-term Rating of ‘AAA (uga)’ with a Stable Outlook, according to a recent report by Fitch Ratings.
This rating reaffirms UDB’s strong creditworthiness and its importance in promoting economic development in Uganda.
“The retention of our ‘AAA (uga)’ rating with a Stable Outlook is a testament to our strong partnership with the government and our commitment to supporting strategic sectors and promoting financial inclusion,” said Ms. Patricia Ojangole, UDB’s Managing Director. “We recognize the efforts of the Government, the Ministry of Finance, and other stakeholders who have been instrumental in our growth and support over time.”
The ‘AAA (uga)’ rating, the highest attainable on Uganda’s national scale, reflects UDB’s high support propensity from the government and its crucial policy role in driving economic growth. The Stable Outlook indicates that the bank’s rating is unlikely to change in the near future, providing a vote of confidence in UDB’s financial stability and resilience.
Fitch Ratings highlighted several key drivers of UDB’s strong rating, including its high propensity to support, important policy role, government ownership, and robust profitability.
The bank’s exposure to services for underbanked and underserved communities, including SME and community development programs, financial literacy programs, and others, also positively impacted its ESG rating.
“We are pleased to retain our top credit rating, which demonstrates our financial strength and commitment to supporting Uganda’s economic growth,” said Ms. Ojangole. “We will continue to work tirelessly to support strategic sectors and promote financial inclusion, and we appreciate the government’s continued support and partnership in our efforts.”