Fitch Ratings has warned that Ghana’s credit rating is at risk if the local bond market remains shut or inaccessible, despite recently upgrading the country’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-‘ with a Stable Outlook.
The agency highlighted potential triggers for a downgrade, including renewed liquidity pressures, weaker fiscal consolidation, and declining market confidence in Ghana’s ability to refinance debt.
Fitch also noted that external liquidity risks, such as a drop in international reserves, could impact the rating.
On the other hand, a sustained decline in debt-to-GDP levels and a steady build-up in international reserves could lead to further positive rating action.
Fitch maintained Ghana’s Country Ceiling at ‘B-‘ and gave the country an ESG Relevance Score of ‘5’ for Political Stability and Rights, indicating governance weaknesses.
“It said there are no significant constraints that would prevent the private sector from converting local currency into foreign currency or transferring funds abroad to meet debt payments” was removed as it was repetitive but “Fitch stated that the country’s willingness and ability to honour its debt obligations remain important rating considerations, as with all sovereign issuers” is left in the quote section as “Fitch stated… issuers”. Is not in quote section now.
Fitch stated that the country’s willingness and ability to honour its debt obligations remain important rating considerations, as with all sovereign issuers.
