Moody's upgrades Ghana's ratings to 'Caa2,' revises outlook to positive on debt restructuring efforts
Oct 11 (Reuters) -Global credit ratings agency Moody's on Friday upgraded Ghana's long-term local and foreign currency issuer ratings to "Caa2" from "Caa3" and "Ca," respectively, citing extensive debt treatment that has significantly alleviated the government's financial burdens.
The agency also revised the West African country's outlook to "positive" from "stable."
The "positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF programme," Moody's said in a statement.
Last week, the International Monetary Fund staff and officials in Ghana reached an agreement on their third review of the country's $3 billion loan programme.
In October, more than 90% of Ghana's bondholders approved a $13 billion debt overhaul, paving way for the gold and cocoa producer to emerge from its near $30 billion debt default in 2022.
Ghana's debt restructuring is expected to reduce its debt stock by $4.7 billion and provide cash flow relief worth a total of $4.4 billion during the period of the IMF programme, which expires in 2026, the government said in June.
The country's statistics agency said in September that Ghana's economy grew by 6.9% in the second quarter of 2024, the fastest in five years.
Moody's also said it expects the country's debt to keep decreasing, though at a slow pace as the government resumes paying interest and principal on all its debts.
Reporting by Anandita Mehrotra in Bengaluru; Editing by Alan Barona
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
