Moody's eyes breakthrough in Botswana

Across Africa, Moody’s rates 65 financial institutions, eight multinational development banks and 32 corporates. The global firm also rates 24 African sovereigns, including Botswana, whose A2 rating it recently confirmed. Moody’s assigns different credit ratings on governments and commercial entities, looking at their capacity to repay their debt commitments on time. The purpose of its ratings is to provide investors with a simple system of grading by which future creditworthiness may be gauged. The firm also provides research, analysis and monitoring of entities on a forward looking basis.

While rated corporates in other countries are leveraging off their sovereign credit ratings to secure discounted credit terms from funders, in Botswana, only Letshego Holdings and the Botswana Development Corporation are covered by Moody’s.