We believe that the government's expansionary fiscal policy, which will translate into large fiscal deficits over the coming two years, will lead to a rapid weakening of Botswana's fiscal net creditor position. We are lowering our long-term sovereign credit rating on the Republic of Botswana to 'A-' from 'A'. The stable outlook reflects a still strong public sector external balance sheet offset by significant economic and fiscal challenges. On Feb. 15, 2010, Standard&Poor's Ratings Services lowered its long- and short-term sovereign foreign currency credit ratings on the Republic of Botswana to 'A-/A-2' from 'A/A-1', on a deeper-than-expected weakening of public finances. The outlook is stable. The local currency ratings were also lowered to 'A/A-1', from 'A+/A-1'. The transfer
