Rating agency, S&P Worldwide has indicate to raise Ghana's drawn out local currency over the course of the following a year following a history of successful execution under the Ghana's Extended Credit Facility (ECF).
In its potential gain evaluation of the viewpoint of the Ghanaian economy, it said it could raise Ghana's evaluating assuming that there is a more articulated economic recovery, and a reinforcing of balance of-payments execution that upholds more grounded fiscal and outer results, easing the heat off the government's funding needs and further improving debt supportability.
On the drawback risk, S&P said it could bring down the local currency rating over the course of the following a year on the off chance that unforeseen negative strategy improvements subvert admittance to supporting from the local market or official sources, or there is a huge defer in International Monetary Fund (IMF) board approval of Ghana's Extended Credit Facility, which was endorsed at the IMF staff level in December 2022.
"Over the medium term, possible setback in ECF execution could block access to financing, possibly from other multilateral lending institutions (MLIs), and renegotiation of Paris Club debt. This situation would probably additionally damage local investor confidence and could prompt a response to national bank supporting in the midst of deteriorating expansion and currency dynamics, coming down on our drawn out local currency rating".
S&P on February 24, 2023, raised its long-and short term local currency sovereign FICO credit ratings on Ghana to 'CCC+/C' from 'SD/C' (selective default).
Simultaneously, it insisted it 'SD/SD' long-and short-term foreign currency ratings.
Moreover, it brought down the foreign currency issue ratings to 'D' (default) from 'CC' on three U.K. law Eurobonds, remembering those developing for July 7, 2023; November 2, 2027 and November 2, 2025.
Outlook reflects government's improved renegotiating profile
S&P said the steady point of view toward the drawn out local currency rating reflects the government's improved renegotiating profile, and paid off cost of debt as a result of its domestic debt rescheduling.
This, it said, is adjusted against as yet testing domestic and external liquidity conditions, extremely high inflation, currency volatility, and uncertainties regarding continuous efforts to rebuild the sovereign's external foreign currency debt.
"Our drawn out foreign currency rating remains 'SD' after the government stopped payments on foreign currency instruments. Ratings at 'SD' don't convey a outlook", it added.