S&P World Rankings has upgraded Ghana’s credit standing to CCC+ from ‘SD’ or Selective Default, on account of the close toing completion of the nation’s debt restructuring negotiations with its industrial collectors
The upgraded score higher displays S&P’s forward-looking opinion of Ghana’s creditworthiness.
The US-based agency in an announcement mentioned the outlook on each the international and native currency scores was secure.
Equally, Ghana’s switchcapability and convertibility assessment stays ’CCC+.
The assertion defined that the secure outlook balances supportive financial development, ongoing fiscal reforms, and Ghana’s improved exterior position in opposition to excessive debt service prices and a weak (though improving) observe report of public monetary administration by means of election cycles.
“The improve displays latest steps taken by authorities to restructure remaining commercial debt, following a profitable Eurobond alternate in October 2024. The federal government is nearing completion of its presents to restructure loans to exterior collectors, primarily industrial banks,” the assertion mentioned.
“This progress follows the profitable completion of native foreign money and Eurobond restructurings, and a memorandum of understanding with bilateral collectors signed and ratified on January 29, 2025”, it added.
It mentioned the scores on Ghana have been supported by enhancing exterior metrics, with important will increase in gold export receipts and a reaccumulation of international alternate (FX) reserves.
As well as, the assertion mentioned financial development remained resilient regardless of the protracted debt restructuring course of.
“Exterior debt makes up 62 per cent of presidency liabilities, or 49 per cent of Gross Domestic Product, implying that debt sustainability will stay contingent on alternate fee developments, and due to this fact key export costs,” it mentioned.
It nevertheless warned that Ghana continues to wrestle with a excessive debt service burden, weak tax administration, and spending overruns, particularly throughout election years.
It famous that inflation, which is presently at 21.2 per cent remained excessive however was falling on account of cedi appreciation and decrease power costs.
“The shift of the nation’s present account into surplus has resulted in elevated exterior liquidity,” the assertion mentioned.
BY TIMES REPORTER
