On Oct. 28, 2016, S&P Global Ratings affirmed its 'A-/A-2' long- and short-term foreign and local currency sovereign credit ratings on the Republic of Botswana. The outlook remains negative.
OVERVIEW
The Botswana government’s fiscal position remains under pressure from weak mining sector revenues and an overall economic slowdown.
However, previous diamond revenues savings leave Botswana well placed to face terms-of-trade challenges. We are therefore affirming our 'A-/A-2' ratings on Botswana.
The outlook remains negative, reflecting the risks to the current ratings on Botswana over the next 12-18 months if the current diamond sector slump proves more structural than cyclical in nature. In our view, this could result in much weaker economic growth or a significant accumulation of government debt beyond our current expectations.
