Botswana creditworthiness upheld :: Mmegi Online

Ratings agency, Moody’s has reaffirmed Botswana’s credit ratings, a wecome development for monetary and fiscal authorities that are looking to finance part of the P6 billion budget deficit for 2016 through borrowings from domestic and foreign markets. In a statement released on Friday, Moody’s Investors Service said it has reviewed and reaffirmed, for 2016, Botswana’s credit rating of A2 for foreign and domestic bonds. Botswana’s stable outlook was also upheld.

This followed a review that took account of the commodity price shock and impact on the country’s economic and fiscal strength.

“Moody’s noted that the current economic and fiscal challenges, emanating from the external environment, are appropriately captured by the A2 rating. “The rating is underpinned by Botswana’s continued fiscal resilience, which is supported by the current level of foreign exchange reserves, relatively low public debt and a track record of prudent rule-based fiscal policy, as well as a strong institutional framework,” stated the ratings agency.

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