The ratings on the Republic of Angola are supported primarily by our view of 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), exceeds several 'BB-' rated peers including Bangladesh, and Mongolia (although there is huge income disparity in Angola). However, the ratings are constrained by what we believe are weak institutions, a low level of development outside the oil sector, and political succession risk and related political tensions. We expect Angola's oil sector will continue growing in the medium term, which should help to further strengthen fiscal and external balance sheets. Crucially, in our view, Angola has a good reputation within the
