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S&P Global Ratings has upgraded Ghana’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+ , reflecting renewed investor confidence and the positive momentum in economic management under the leadership of Finance Minister Dr. Cassiel Ato Forson
The rating agency announced the move following the successful conclusion of key phases of the country’s domestic debt exchange programme and continued negotiations with external creditors.
According to S&P’s latest report, Ghana’s negotiations with its remaining commercial creditors are nearing completion — a key milestone that has restored credibility and eased fiscal pressure.
The upgraded credit rating is underpinned by strengthening external indicators, notably a marked rise in gold export earnings and the steady re-accumulation of foreign exchange reserves.
It signals improved external liquidity and enhanced capacity to meet near-term external obligation as the restructuring of outstanding commercial debt also nears completion.
Following the successful Eurobond exchange in October 2024, the revised ‘CCC+’ rating more accurately captures Ghana’s improving creditworthiness.
This marks a critical step forward after the successful completion of both local currency and Eurobond restructurings, as well as the ratified memorandum of understanding with bilateral creditors signed on January 29, 2025.
However, S&P Global Ratings warns that Ghana’s credit rating could face downward pressure over the next 12 to 18 months if fiscal performance deteriorates or financing conditions tighten.
Currently, fiscal reforms to fix economic vulnerabilities are underway amidst the structural challenges in the fiscal outlook of the country.
Inflation, though still elevated at 21.2% is on a downward trend – its lowest level in eight months as a stronger cedi has helped curb import-related price pressures.
The local currency, which crossed the GH¢17 mark on the retail market in 2023, is now trading around GH¢14 as it is showing signs of resilience.
Finance Minister, Dr. Cassiel Ato Forson assures that the gains are not short-lived occurrences but a reflection of prudent and well-coordinated economic policies.
He attributes the sustained progress to robust fiscal planning and targeted policy actions aimed at restoring macroeconomic confidence.
Source: myghanadaily
