Moody’s affirms Botswana’s ratings, downgrades outlook

Moody’s weekend decision follows a similar assessment by S&P Global Ratings last month. Moody’s and S&P are two of the three main credit ratings agencies whose opinions determine government’s cost of borrowing, as well as the country’s attractiveness to investors. The other ratings agency is Fitch.

Moody’s researchers said the affirmation of the sovereign credit rating was based on the country’s credit strengths, including “its still moderate debt burden and its track record of managing economic and fiscal shocks”. The researchers also highlighted the peaceful transition of power in last year’s general election and the potential that the new government has the “mandate and political capital” to make difficult choices for fiscal stability.