USE gets AA credit rating as bourse seeks deeper market trust
Jeremiah Karugaba, ICRA director for Uganda operations, said the rating was based on USE’s business profile, capital structure, earnings quality, governance and macro and country risk factors.
L-R; Josephine Ossiya, chief executive officer at the Capital Markets Authority, Jeremiah Karugaba, ICRA director for Uganda operations, Dan Tumuramye, board director at USE and Paul Bwiso, chief executive officer at USE, during the announcement at USE head offices in Kampala. (Photos by Ali Twaha)
________________
The Uganda Securities Exchange (USE) has received an AA (Evolving) issuer credit rating from ICRA Rating Agency.
A credit rating is an independent opinion on an issuer’s ability to meet its financial obligations, and in practice it helps investors compare risk and expected return across instruments.
According to officials, the rating confirms USE’s financial strength, governance and ability to meet obligations. The rating, announced today (July 22) is the exchange’s first independent credit rating.
Jeremiah Karugaba, ICRA director for Uganda operations, said the rating was based on USE’s business profile, capital structure, earnings quality, governance and macro and country risk factors.
Josephine Ossiya, the chief executive officer at the Capital Markets Authority, while delivering her remarks at the event.
“ICRA was the first credit rating agency that we have licensed in Uganda. Capital markets run a lot on trust and independent credit ratings contribute to building confidence by providing investors with objective information to support informed decision-making,” she said.
“They are not guarantees nor are they recommendations to invest, but we commend USE for undertaking this exercise as part of its preparations for establishing a medium-term note.”
Dan Tumuramye, board director at USE, said the rating reflects years of work to strengthen the exchange’s institutional foundation and create a transparent, fair and efficient market for investors and capital raisers.
Paul Bwiso, chief executive officer at USE, said the agency recognised the exchange’s debt-free capital structure, strong liquidity and diversified income streams, and said the rating gives issuers, investors and partners independent proof of the exchange’s soundness.
“Issuers, investors, brokers, and regional partners increasingly demand independent, standardised evidence of institutional soundness. This rating gives them exactly that. The rating rationale speaks for itself,” he said.