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Diamonds Fuel Moody’s Botswana Optimism
Dec 18, 2017 7:57 AM
By Rapaport News
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RAPAPORT... Moody’s has maintained its credit rating for Botswana,
citing the nation’s strong fiscal position and expectations of growth for the
diamond sector.
The ratings agency reaffirmed the country’s “A2” rating
for long- and short-term bonds, and kept its outlook for its economy at
“stable,” the Bank of Botswana said in a statement last week.
Moody’s based its decision on
Botswana’s low debt levels, large sovereign wealth fund, strong economic
infrastructure and stable political environment, the bank explained. The agency
premised its outlook for the economy on an assumption that the country will
continue to show fiscal prudence, the bank added.
“Expected growth in diamond output, progress in enhancing
diamond-value addition and development of the services sector also contribute
to the rating,” the statement continued.
“There is a possibility of a medium-term upward
revision of the ratings if progress is made in diamond beneficiation, economic
diversification and the implementation of efficiency-enhancing public sector
reforms, as well as private-sector development leading to a marked reduction in
unemployment,” it added.
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Tags:
Bank of Botswana, beneficiation, Botswana, Moody’s, Rapaport News, ratings
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