Standard & Poor's Ratings Services revised its outlook on the Republic of Botswana to negative from stable and affirmed its 'A-/A-2' long- and short-term foreign and local currency sovereign credit ratings.
OVERVIEW
- Lower diamond prices and production are affecting Botswana's fiscal position and slowing its economy.
- However, past savings of diamond revenues place Botswana in a position of strength to face this terms-of-trade shock.
- We are therefore affirming our 'A-/A-2' ratings on Botswana.
- We are, however, revising our outlook to negative from stable, to acknowledge downside risks if the current diamond sector slump proves more structural than cyclical in nature.
