S&P World Scores has upgraded Ghana’s credit standing to CCC+ from ‘SD’ or Selective Default, because of the nearing 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 overseas and native foreign money rankings is steady.
Equally, Ghana’s transferability and convertibility evaluation stays ’CCC+.
It defined that the steady outlook balances supportive financial development, ongoing fiscal reforms, and Ghana’s improved exterior place in opposition to excessive debt service prices and a weak (though enhancing) monitor file of public monetary administration by election cycles.
“The improve displays current steps taken by authorities to restructure remaining industrial debt, following a profitable Eurobond trade in October 2024. The federal government is nearing completion of its affords to restructure loans to exterior collectors, primarily industrial banks. 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 continued that the rankings on Ghana are supported by enhancing exterior metrics, with vital will increase in gold export receipts and a reaccumulation of overseas trade (FX) reserves.
As well as, financial development stays resilient regardless of the protracted debt restructuring course of. Exterior debt makes up 62% of presidency liabilities, or 49% of Gross Home Product, implying that debt sustainability will stay contingent on trade fee developments, and subsequently key export costs.
It nonetheless warned that Ghana continues to battle with a excessive debt service burden, weak tax administration, and spending overruns, particularly throughout election years.
It famous that inflation, which is at the moment at 21.2%, stays excessive however is falling resulting from cedi appreciation and decrease vitality costs. The shift of the nation’s present account into surplus has resulted in elevated exterior liquidity.
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