Advanced Search

Diamonds Fuel Moody’s Botswana Optimism

Dec 18, 2017 7:57 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

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.
Tags: Bank of Botswana, beneficiation, Botswana, Moody’s, Rapaport News, ratings
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2022 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.