On Oct. 17, 2005, Standard&Poor's Ratings Services affirmed its 'A' long-term and 'A-1' short-term foreign currency and its 'A+' long-term and 'A-1' short-term local currency sovereign credit ratings on the Republic of Botswana. The outlook is stable. The ratings on Botswana reflect the sovereign's strong external net asset position, a well-managed minerals-based economy, and political and macroeconomic stability, offset by the narrow economic base and the challenges posed by the HIV/AIDS pandemic. The public sector net external asset position, at about 100% of current account receipts in 2005, is among the highest recorded by any rated sovereign, bolstering the government's capacity to absorb potential shocks. The general government balance achieved a surplus of 2.7% of GDP in fiscal
