The ratings on Botswana reflect the sovereign's strong external net asset position, a well-managed minerals-based economy, and political and macroeconomic stability, offset by the narrow economic base and the challenges posed by the HIV/AIDS pandemic. The public sector net external asset position, at about 100% of current account receipts (CARs) in 2005, is among the highest recorded by any rated sovereign, bolstering the government's capacity to absorb potential shocks. The general government balance achieved a surplus of 2.7% of GDP in fiscal year 2004/2005 (ending March 31, 2005) and is forecast to reach a small surplus in 2005/2006 of about 0.4% of GDP. The return of fiscal surpluses, from average annual deficits of about 2.4% in the three previous years,
