The ratings on the Republic of Botswana reflect the sovereign's strong financial 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, projected at 95% of current account receipts in 2006, continues to bolster the government's capacity to absorb potential shocks, notwithstanding the long-term declining trend in government assets due to slowly diminishing mineral revenues and higher spending on HIV/AIDS. Total public debt remains moderate, at less than 10% of GDP, mainly representing domestic debt issued to develop a domestic bond market, and multilateral external debt. The general government balance achieved a surplus of about 3% of GDP in
