On Nov. 10, 2006, 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 reflect the sovereign's strong financial position, well-managed and growing minerals-based economy, and political stability. These factors are offset by Botswana's narrow economic base and high inflation, as well as by the challenges to growth posed by the country's large development needs. The public sector's net external asset position, at 119% of current account receipts in 2006, is among the highest recorded by Standard&Poor's-rated sovereigns and continues to bolster the government's capacity to absorb potential shocks. Total government
