UDB gets AA+ Global Credit Rating 

Global Credit Rating Company  Limited (GCR) has assigned Uganda Development Bank Limited (UDB) national scale issuer private ratings of AA+(UG)/A1+(UG) in the long and short term respectively, a notch below the

highest possible rating with the outlook accorded as stable.

At the same time, GCR has also assigned UDB an international scale long term issuer private rating of B

with a stable outlook balancing for the operating environment to remain vulnerable to domestic and

geopolitical instability.

GCR ratings, an affiliate of Moody’s Investors Services has established itself as the leading ratings agency

in Africa, accounting for the majority of all ratings accorded on the African continent providing critical

insights into credit across a range of sectors in the continent, with local presence in Mauritius, South Africa,

Nigeria, Kenya, and Senegal.

Positioned as the government of Uganda’s policy financial institution, UDB’s interventions are targeted to

the high priority sectors that are otherwise deemed riskier with low penetration of private credit.

UDB  has built a long track record and support (both financial and non-financial) from the government has strengthened and as such the bank has experienced rapid growth over the last 3 - 4 years, with total assets increasing twofold due to shareholder capital contributions that have been aimed at supporting countercyclical measures.

Other key highlights from the GCR Ratings include  capitalization is a ratings strength, reflected in the very strong GCR leverage ratio of 86% at FYE21, up 300bps from the prior year whereas  UDB is a low leveraged entity with capital structure that is dominated by equity though the position is projected to decline albeit maintaining a strong level.

GCR Ratings projects equity contribution to decline to around 65% over the next 12-18months, with continued countercyclical interventions.

UDB funding is stable with equity dominating the capital structure, while debt funding is also long term

with limited covenants among other issues.

Commenting on the bank’s achievement, UDB’s Managing Director, Patricia Ojangole, welcomed GCR

Ratings’ assessment as a true reflection of the national realities amidst challenging economic times

specifically to the credit starved but critical sectors for Uganda’s development.

“UDB champions access to financial services with the aim of accelerating socio-economic

development through sustainable financial interventions in line with the country’s development priorities.

The assessment by GCR Ratings is a vote of confidence that the Bank’s processes are designed to enable

timely access to credit which in the long run influences business growth and economic progress,”Ojangole said.

“We also thank our shareholders, the Government of Uganda and all our stakeholders who have

continuously supported and guided UDB towards the achievement of our goals. Over the next 12 months, the bank is set to maintain a mix of growth and asset quality management strategies as sustainability

frontiers, leverage on the existing development partnerships while building a pool of sustainable funding lines as we inspire Uganda’s development.’’


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