Weak institutions, a lack of transparency, and weak economic management. Low level of development outside the oil sector. Untested presidential succession and underlying political tensions. Generous oil and gas reserves and strong oil revenues. Low fiscal debt burden. Strong external balance sheet. The ratings on the Republic of Angola are constrained by what we believe are weak institutions, a low level of development outside the oil sector, persistent double-digit inflation, and political succession risk and related political tensions. The ratings are supported primarily by the country's large hydrocarbon endowment, strong growth prospects, and low government and external debt levels. In addition, Angola's level of prosperity (measured as GDP per capita) is high, although there is huge income disparity. We believe
