On Sept. 12, 2002, Standard&Poor's Ratings Services affirmed its single-'A'/'A-1' foreign currency and single-'A'-plus/'A-1' local currency issuer credit ratings on the Republic of Botswana. The affirmation balances enduring fiscal flexibility and a track record of economic and political stability against significant development needs, dependence on the global diamond market, and the mounting macroeconomic impact of the HIV/AIDS epidemic. The outlook is stable. The ratings on Botswana are supported by: Its balance-sheet strength and expenditure flexibility. Public sector net external assets, at 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.
