latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/s-p-downgrades-botswana-on-expected-prolonged-fiscal-external-deficits-57797951 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

S&P downgrades Botswana on expected prolonged fiscal, external deficits

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive


S&P downgrades Botswana on expected prolonged fiscal, external deficits

S&P Global Ratings lowered the long-term foreign and local currency sovereign credit ratings on Botswana and the Bank of Botswana to BBB+ from A- and affirmed their short-term ratings at A-2.

The outlook is stable.

The rating agency said a prolonged depressed diamond market could negatively affect the already weakening fiscal and external balance sheets of the country, which S&P Global Ratings expects will have closed 2019 with a current account deficit of more than 8% of GDP.

The African nation will likely record twin deficits in the next few years, which could gradually cut into its "traditionally strong" fiscal and external buffers over the medium term. The rating agency expects the country's liquid external assets to continue to exceed its external debt.

S&P Global Ratings projects that Botswana's economy will grow a "modest" 2.6% in 2020 if the coronavirus pandemic somewhat stabilizes by mid-2020, down from 3.6% in 2019.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.