Botswana's Oct. 25, 2014 elections proceeded fairly smoothly. The incumbent Botswana Democratic Party retained its (albeit reduced) majority and, in our view, will maintain broad policy continuity. A rebound in global diamond demand is supporting diamond exports and, in turn, Botswana's economic growth. Robust mineral and Southern African Customs Union revenues have improved the fiscal and external accounts. We are therefore affirming our sovereign credit ratings on Botswana at 'A-/A-2'. The stable outlook reflects our expectation of continued political stability, fairly resilient economic growth, small fiscal surpluses, and institutional strength, albeit with a heavy reliance on diamonds. On Nov. 7, 2014, Standard&Poor's Ratings Services affirmed its 'A-' long-term and 'A-2' short-term foreign and local currency sovereign credit ratings
