Uganda, May 21 -- Global rating agency Moody's on Friday downgraded Uganda's rating to B3 from B2, citing diminished debt affordability and increasingly constrained financing options, which forced the commercial banks to buy hard currency, hence weakening the Uganda shilling.

By Monday evening, commercial banks quoted the shilling at 3,782/3,792, compared to Friday's close of 3,775/3,785.

In a statement issued by the global rating agency, the downgrade is mainly due to concerns on Uganda's debt affordability and largely due to concerns over Uganda's debt affordability and limited financing options.

As a result of the ratings, the Uganda government may face problems accessing global credit markets or attracting investors into the countr...