Botswana's forex ratings go from stable to positive

The positive outlook affects all of Botswana's foreign and local currency debt and deposit country ceilings as well as the 'A2' foreign currency issuer rating of the government. The government's 'A1' local currency bond rating continues to carry a stable outlook, the ratings agency said.

The current account surplus widened to nearly 20 percent of GDP while the government budget surplus grew to 11.8 percent of GDP in 2006-07, thanks to rising minerals income and spending restraint, Moody's said. However, Botswana still faces major socio-economic challenges that will likely constrain its government ratings to the 'A' rating range over the long term in spite of its extraordinarily strong financial situation, Moody's added. (Thomson Financial)