S&P's waves red flags

Bank of Botswana Governor Pelaelo
Bank of Botswana Governor Pelaelo

Leading global agency, Standard & Poor's, downgraded the country's sovereign credit rating over the weekend, the first such move in 11 years, as concerns grow about the country’s budget outlook.

When S&P’s last downgraded Botswana in 2009, the country was wrestling with a collapse of diamond revenues due to the global recession. This time, having emerged from a year of weaker diamond revenues, analysts at S&P’s said their projection was that the country would face continuing pressure on its budget in the “next few years”.

At their essence, sovereign credit ratings are ‘scores’ assigned to countries’ ability to repay debts. Low credit ratings mean countries pay higher interest rates and have lower ability to attract investors, who would worry about raising affordable capital from within such countries.

Editor's Comment
Congratulations Anicia Gaothuse!

The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...

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