Moody's: Botswana's ratings supported by low debt

In its annual report on Botswana, Moody's Investors Service said the government's mid-investment grade A2 foreign currency bond rating with a stable outlook is supported by low debt, conservative fiscal policies and a strong external position.

Botswana's foreign currency country ceiling for bonds and notes is Aa3, reflecting both the government's strong credit quality and Moody's assessment of low moratorium risk.

During the past year, there were signs of an improving outlook for economic growth, albeit still driven primarily by the mining sector, the agency noted.

In spite of these very favorable circumstances, Botswana's government ratings are constrained by its narrow economic base, along with fiscal pressures posed by HIV/AIDS care and ongoing development challenges, Moody's said.

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