Moody’s has announced it will upgrade Ghana’s credit ratings provided the government maintains fiscal discipline and policy effectiveness. The agency cited a growing track record of spending restraint and sustained revenue gains as evidence of improving fiscal policy.
Moody’s said progress in tackling fiscal risks would bolster confidence in the durability of Ghana’s fiscal gains. It also highlighted that a continued strengthening of external buffers would support upward rating pressure.
However, the agency warned that a deterioration in financing conditions could create downward pressure on the rating. A sustained erosion of foreign‑currency buffers, or a large external shock, could threaten macroeconomic stability and the government’s ability to service its foreign‑currency obligations, leading to a rating downgrade.
Over the weekend, Moody’s upgraded Ghana’s long‑term foreign‑currency and local‑currency issuer ratings to B3 from Caa1 and changed the outlook to stable from positive. The agency also raised Ghana’s foreign‑currency senior unsecured debt ratings to B3 from Caa1 and the foreign and local‑currency senior unsecured MTN program ratings to (P)B3 from (P)Caa1.
The upgrade reflects a sustained easing in Ghana’s domestic financing conditions, reducing financing costs and improving debt affordability, even amid external headwinds from the Middle East conflict. Moody’s described this as a result of continued fiscal discipline, institutional improvements, and favourable export prices supporting macroeconomic stability.
Ghana’s economy will now be monitored closely by Moody’s, with the next rating decision dependent on the government’s ability to sustain fiscal consolidation and maintain policy credibility.
