Botswana Outlook Negative As Diamonds Lose Sparkle-S&P

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Ratings agency Standard & Poor's cut its outlook for Africa's highest rated sovereign Botswana on Thursday, warning of worsening public finances as diamond revenue is hit by the global financial crisis.

While some investors had hoped the world's poorest continent Africa would prove largely unaffected by the worldwide downturn, it has quickly filtered through even to countries until recently seen as among the most promising frontier markets.

S&P said it was cutting its outlook for diamond producer Botswana to negative from stable, maintaining its A/A-1 foreign currency and A+/A-1 local currency rating.

Editor's Comment
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