On Nov. 14, 2003, Standard&Poor's Ratings Services affirmed its 'A/A-1' foreign currency and 'A+/A-1' local currency ratings on the Republic of Botswana. The outlook is stable. The ratings on Botswana are supported by: The strength of the public sector's balance sheet, and expenditure flexibility. Public sector net external assets, at about 130% of current account receipts in 2003, are among the highest recorded by any rated sovereign, bolstering the government's capacity to absorb potential shocks. Fiscal deficits since 2001/2002, mainly due to cyclical factors, do not reflect a change from the government's policy of sustainable budgets, and the general government is projected to return to broad balance this year. Looking ahead, the HIV/AIDS epidemic could require additional health
