A strong public sector balance sheet and prudent fiscal policies. A well-managed minerals economy. A long record of political and macroeconomic stability. A narrow economic base. High development needs and an HIV/AIDS pandemic that pose significant policy and financial challenges. The ratings on Botswana reflect the sovereign's strong external net asset position, a well-managed minerals-based economy, and political and macroeconomic stability, offset by the narrow economic base and the challenges posed by the HIV/AIDS pandemic. The public sector net external asset position, at about 100% of current account receipts (CARs) in 2005, is among the highest recorded by any rated sovereign, bolstering the government's capacity to absorb potential shocks. The general government balance achieved a surplus of 2.7% of GDP
