Two credit rating agencies, Moody’s Investor Services (“Moody’s”) and Standard and Poor (“S & P”) have affirmed Ghana’s credit rating at B3 and B- respectively.
The rating agencies also maintained Ghana’s outlook.
A statement from the Finance Ministry on Tuesday said, “In making their decision, the credit rating agencies considered Ghana’s improving growth prospects, resilient external sector performance, and continued access to the capital markets (domestic and international) as essential factors in maintaining the rating and the outlook.”
“Notably, the two rating agencies recognised the efforts of the government to ‘build back better’ through the innovative Ghana CARES (Obaatanpa) programme.
“Furthermore, both credit rating agencies (Moody’s and S & P) acknowledge that Ghana’s economy is recovering from the effects of the pandemic faster than its peers.”
The statement added, “Hence, we should focus more on growth and the implementation of the Ghana CARES Programme. S & P, in particular, maintained Ghana’s rating on the back of the growing economic prospects and the relatively transparent and responsive political institutions.
“The stable outlook balances risks from fiscal and external financing pressures against the country’s medium-term economic growth prospects. Understandably, both credit rating agencies raised some concerns about Ghana’s debt affordability and levels. The government, however, is committed to debt sustainability and fiscal consolidation.
“As such, between 2019 and 2021, the government has undertaken various liability management measures to proactively reduce the external debt stock and the interest expense burden. As a result, the government bought back and retired over US$900 million worth of Eurobonds which has reduced the external debt stock significantly.”