On Feb. 19, 2009, Standard&Poor's Ratings Services revised its outlook on the Republic of Botswana to negative from stable, on rapidly deteriorating public finances. At the same time, the 'A/A-1' foreign currency and 'A+/A-1' local currency sovereign credit ratings were affirmed. The outlook revision reflects our view that economic policy challenges for Botswana are rising because of the severe contraction of the country's key commodity markets, which had spurred many years of strong economic growth, abundant fiscal revenues, and asset accumulation. In particular, the fall in diamond production and prices since November 2008 has significantly undermined Botswana's economic growth prospects, fiscal outturns, and external balances, which will ultimately lead to a reduction of the country's asset buffers. The
