Two Credit Rating Agencies Moody’s Investor Services and Standard and Poor, S&P have affirmed Ghana’s Credit Rating at B3 and B- .
The Rating Agencies also maintained Ghana’s outlook.
In making the decision, the credit rating agencies considered Ghana’s improving growth prospects, resilient external sector performance, and continued access to the capital markets both domestic and international as essential factors in maintaining the rating and the outlook.
A statement issued by the Public Relations Unit of the Ministry of Finance said the two rating agencies recognized efforts of government to build back better through the innovative Ghana CARES Obaatanpa Programme.
It said both Moody’s and S & P acknowledge that Ghana’s economy is recovering from the effects of the Covid-19 pandemic faster than its peers.
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.
The statement said the agencies raised some concerns about Ghana’s debt affordability and levels, which it said government is committed to debt sustainability and fiscal consolidation.
As such, between 2019 and 2021, government has undertaken various liability management measures to proactively reduce the external debt stock and the interest expense burden.
As a result, government bought back and retired over 900million dollars worth of Eurobonds which have reduced the external debt stock significantly.
On the domestic front, government continues to conduct active liability management. This year alone, an amount of 4.84 billion has been used for domestic liability management, which involves the buy-back of 3 years and 5 years bonds.
