Lower diamond prices and production are affecting Botswana's fiscal position and slowing its economy. However, past savings of diamond revenues place Botswana in a position of strength to face this terms-of-trade shock. We are therefore affirming our 'A-/A-2' ratings on Botswana. We are, however, revising our outlook to negative from stable, to acknowledge downside risks if the current diamond sector slump proves more structural than cyclical in nature. On April 29, 2016, Standard&Poor's Ratings Services revised its outlook on the Republic of Botswana to negative from stable and affirmed its 'A-/A-2' long- and short-term foreign and local currency sovereign credit ratings. Botswana is one of the world's largest rough diamond producers, and the diamond mining industry remains its
