On July 23, 2004, Standard&Poor's Ratings Services affirmed its 'A/A-1' foreign currency and 'A+/A-1' local currency sovereign credit ratings on the Republic of Botswana. The outlook is stable. The ratings reflect Botswana's strong public sector balance sheet, well-managed minerals economy, and political and macroeconomic stability, balanced by the narrowness of the economy and the challenges posed by the HIV/AIDS pandemic. Public sector net external assets, at about 130% of current account receipts in 2004, are among the highest of any rated sovereign, bolstering the government's capacity to absorb potential shocks. Spending pressures and the HIV/AIDS pandemic, combined with a plateau in mineral revenues could represent important fiscal challenges in the future. Nevertheless, the government, which has built a
