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 global downturn is harshly affecting Botswana, as the country's key commodity markets have contracted severely over the past six months and external demand has slumped. In particular, the fall in diamond production and prices has significantly undermined Botswana's economic growth prospects, fiscal outturns, and external balances, which Standard&Poor's Ratings Services believes will ultimately lead to a reduction of the country's asset buffers. We expect Botswana's real GDP to
