Uganda Stock Exchange earns AA credit rating

What the report says

Nile Post reports that the Uganda Stock Exchange (USE) has received a Double AA credit rating from ICRA Rating Agency Limited, an independent assessment the exchange says will help reinforce confidence in Uganda’s securities market. The report describes the rating as a notable step for a market infrastructure institution in Uganda, coming as the country seeks to mobilize more long-term investment through capital markets.

According to Nile Post, ICRA assessed the exchange on its institutional baseline, credit profile and governance framework. The agency cited factors including a debt-free balance sheet, strong liquidity, diversified revenue sources and governance systems as supporting the AA rating, which indicates a very high level of creditworthiness and capacity to meet financial obligations.

USE Chief Executive Officer Paul Bwiso said, as reported by Nile Post, that the rating provides independent evidence of the exchange’s financial strength at a time when investors are placing greater emphasis on transparency and accountability. He also linked the development to plans to broaden the market with more debt and equity products, and to efforts to attract more issuers and investors.

The Capital Markets Authority also welcomed the rating, with CEO Josephine Ossiya saying independent credit assessments can improve transparency and corporate governance. Nile Post placed the development in the broader context of Uganda’s relatively small capital market, where regulators are trying to expand listings, grow the investor base and provide alternatives to bank financing for companies and public investment needs.