The ratings on the Republic of Botswana are supported by: Its balance-sheet strength and expenditure flexibility. Public sector net external assets, at about 170% of current account receipts, are among the highest of rated sovereigns, bolstering the government's capacity to absorb potential shocks. Revenues from abundant diamond resources, coupled with fiscal prudence, have enabled Botswana to record healthy budget surpluses. In the coming years, the HIV/AIDS epidemic will reduce general government surpluses from their long-term average of 6% of GDP. The strong fiscal position, however, should allow Botswana to absorb AIDS-related costs, including a universal program of publicly funded antiretroviral therapy, without significantly eroding its sovereign creditworthiness. A strong and well-managed minerals economy, coupled with a long record of political
