The ratings on the Republic of Botswana reflect its strong public sector fiscal and external balance sheets, its well-managed minerals-based economy, and a long record of political and macroeconomic stability. These factors are offset by heavy reliance on mining sector performance despite diversification efforts, and still significant development needs. The impact of the global downturn on Botswana's diamond exports and other commodities is in turn likely to have a significant effect on economic growth, fiscal outturns, and external balances. Nevertheless, we expect that the marked cyclical deterioration will be sufficiently contained to preserve comfortable net creditor positions on both the fiscal and external side. Although the diamond sector could be more resilient than in past downturn episodes owing to structural
