The ratings on the Republic of Angola are constrained by what we believe are weak institutions, a low level of development outside the oil sector, persistent double-digit inflation, and political succession risk and related political tensions. The ratings are supported primarily by the country's large hydrocarbon endowment, strong growth prospects, and low government and external debt levels. In addition, Angola's level of prosperity (measured as GDP per capita) is high, although there is huge income disparity. We believe that elections due on Aug. 31, 2012, will almost certainly be won by the ruling MPLA, and the president, Jose Eduardo dos Santos, re-elected. However, presidential succession is untested in post-conflict Angola (Mr. Santos has ruled for 33 years) and entails a
