Botswana’s long-term foreign currency debt rating was affirmed by S&P at BBB+, with the outlook revised from stable to negative. S&P indicated that weak global demand for diamonds and depressed prices are likely to keep Botswana’s export and fiscal flows subdued, making fiscal consolidation more challenging. The negative outlook also reflects concerns that Botswana’s external and public balance sheets may erode further. S&P projects that without substantial improvements in diamond prices or government fiscal efforts, Botswana’s fiscal consolidation efforts will remain challenging.