Fitch revised Uganda’s outlook to stable from negative and affirmed its rating at ‘B+’. Fitch forecasts Uganda’s deficit to narrow to 7.5% of GDP in the fiscal year ending June 2022 (FY22), from 9.2% in the same period last year. Uganda is under a $1bln IMF extended credit facility and completed the first program review in March. The IMF program entails further deficit reductions to 4.7% of GDP in FY23, but the government’s GY23 budget contains a higher fiscal deficit. A failure to reach to an agreement with the IMF on the updated fiscal targets could delay future disbursements.