"This is not an intellectual argument. If you want a sophisticated debt market, you need credit ratings," Fitch Ratings managing director Tertius Smith said on Thursday.
"I am aware the debt market trade without ratings in Botswana but ratings will help broaden your investment community and give you transparent transactions," he told a credit ratings workshop organised by Botswana Stock Exchange (BSE) at Gaborone Sun.
His company, Fitch Ratings is a leading global rating agency, which has grown rapidly during the past decade, gaining market presence throughout the world and across all fixed income markets. The company is dual-headquartered in New York and London, operating offices and joint ventures in more than 49 locations and covering entities in more than 90 countries.Meanwhile, BSE product development manager Thapelo Tsheolo said in an interview that the introduction of credit ratings concept is one of the initiatives that the local bourse has lined up to boost the capital market. He said the local market has been performing exceptionally well for the past two years hence a huge demand for investments from foreign investors.
