International ratings agency, Fitch Ratings, has upgraded Ghana’s Long-Term (LT) Local-Currency (LC) Issuer Default Rating (IDR) to ‘CCC’ from ‘RD’.
The upgrade of the ratings on Ghana’s LC denominated debt follows the completion of the Domestic Debt Exchange Programme by Ghana in February 2023.
Fitch, however, viewed the transaction as a distressed debt exchange in a context of heightened fiscal pressures, with interest costs amounting to 54 per cent of revenues in half-year 2022, and lack of access to international capital markets.
Fitch in a report released on Wednesday said “the upgrade of Ghana’s LTLC IDR follows the resumption of payments on LC bonds that cure the default on LC debt”.
Despite this, the country still remains in the junk status. Read more