Generous natural resource endowment and strong oil revenues. Low foreign debt burden and strong external balance sheet. High GDP per capita and strong growth performance. Weak institutions and poor economic management. Low level of development outside the oil sector. Political succession risk and underlying political tensions. The ratings on the Republic of Angola are supported primarily by our view of 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), significantly exceeds the median for 'B' rated peers and is closer to 'BB' rated sovereigns (although there is huge income disparity). Furthermore, gross external financing needs as a share of useable reserves and current
