On Aug. 6, 2008, Standard&Poor's Ratings Services revised its outlook on Burkina Faso from positive to stable on increased fiscal and external vulnerabilities. At the same time, we affirmed the 'B' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Burkina Faso. The outlook revision reflects our expectation that the current economic environment, characterized by upward pressure on energy and food prices and an appreciating currency that is pegged to the euro, will further weaken Burkina Faso's already minimal external and fiscal flexibility. The general government deficit (excluding grants) is estimated at 12% of GDP in 2008 and at about 13% of GDP in 2007. Although we expect the deficit to continue to be largely
