In our view, Botswana's fiscal balance sheet is still strong despite recent deterioration, its minerals-based economy is well managed, and it has a long track record of political stability. We are therefore affirming our foreign currency sovereign ratings on Botswana at 'A-/A-2'. Our new sovereign criteria put more weight on the exchange rate regime in determining local currency creditworthiness. We are therefore equalizing the local and foreign currency ratings because Botswana relies on a crawling peg and because the sovereign's monetary flexibility is limited, in our view. The stable outlook balances our view of the government's demonstrated commitment to prudent economic policies against the risks stemming from a narrow economic structure. On Nov. 23, 2011, Standard&Poor's Ratings Services
