S&P Global Ratings has upgraded Ghana’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+’, citing progress in debt restructuring and an improved macroeconomic outlook. The upgrade follows the successful conclusion of the domestic debt exchange program and ongoing negotiations with external creditors.
The rating agency affirmed its ‘CCC+’ issue ratings on Ghana’s debt and maintained a stable outlook on both foreign and local currency ratings. The upgrade is supported by strengthening external indicators, including a rise in gold export earnings and foreign exchange reserves.
However, S&P warns that Ghana’s credit rating could face downward pressure if fiscal performance deteriorates or financing conditions tighten, potentially increasing debt servicing costs and constraining the government’s ability to refinance debt.
Despite challenges, Ghana’s economy shows signs of resilience, with inflation trending downward at 21.2% and the cedi stabilizing around GH¢14. Finance Minister Dr. Cassiel Ato Forson attributes the progress to robust fiscal planning and targeted policy actions aimed at restoring macroeconomic confidence.
