Moody’s Maintains BPC Rating Despite Gov't Downgrade
Botswana Power Corporation (BPC) has maintained its investment-grade status with a Baa3 credit rating from Moody’s Ratings, despite the downgrade of Botswana’s sovereign rating.
The BPC's credit rating withstood the sovereign downgrade due to the country's weakening fiscal position. However, the outlook for BPC remains negative due to technical inefficiencies constraining power production at Morupule B.
- The 600MW Morupule B plant has suffered frequent breakdowns since its commissioning in 2012.
- Design flaws and other weaknesses are cited as the causes of the breakdowns.
The stories shared are not just complaints, but also a damning indictment of a system that has failed the people it is meant to serve.
Author's summary: BPC maintains investment-grade status despite sovereign downgrade.