Myanmar’s success story goes on. After unexpected political and economic opening by the military junta a few years ago, the democratic transition is proceeding smoothly under the civilian government. The stabilised political environment is benefiting investor and consumer confidence, is allowing the Burmese economic boom to continue, and justifies a short-term political risk upgrade from 5/7 to 4/7. Though foreign exchange reserves are hit by decreased gas exports and soaring imports, overall external liquidity is sufficient to finance a low short-term debt and weak debt service. Moreover, based on strong economic forecasts and a positive FDI outlook in one of the fastest growing countries in Asia, the liquidity situation is expected to improve gradually.