A Botswana-based financial services company’s issuer ratings have been dropped from Baa2/Prime-2 to Baa3/Prime-3, by Moody’s Investors Service.
Botswana Development Corporation (BDC) has been downgraded on the weakening capacity of the Botswana government to support the company in case of need.
Meanwhile, Moody’s has also kept BDC’s outlook at negative, on the rising pressures on its financial performance, specifically on its profitability and cash flow metrics – and standalone credit profile. This is on the back of the coronavirus disease 2019 (COVID-19) crisis.
This comes after Moody’s revised BDC’s rating outlook from stable to negative, following the revision of the country’s rating, in 2020.