S&P Global Ratings has upgraded Ghana’s foreign currency credit rating from Selective Default (SD) to CCC+. The upgrade follows major steps in the country’s debt restructuring and a more stable economic outlook.
S&P affirmed its CCC+ issue ratings and kept a stable outlook for both foreign and local currency ratings. The agency also confirmed Ghana’s transferability and convertibility assessment at CCC+.
Why the Upgrade?
Ghana completed key phases of its domestic debt exchange programme and continues talks with external creditors. These efforts have helped improve investor confidence. Rising gold export earnings and a steady increase in foreign exchange reserves have strengthened the country’s external position. Ghana now has better liquidity and can meet near-term external obligations.
S&P said the October 2024 Eurobond exchange and a deal with bilateral creditors signed on January 29, 2025, reflect real progress in restoring creditworthiness.
Risks Ahead
S&P warned that Ghana’s rating could fall again in the next 12 to 18 months. This could happen if fiscal performance worsens or global financing conditions become tougher. Higher debt servicing costs could increase financial pressure and make it harder to refinance upcoming debts. Still, the agency believes holdout creditors are unlikely to disrupt the process. Protections under the G20 Common Framework and most-favored creditor clauses reduce this risk.
Government’s Response
Finance Minister Dr. Cassiel Ato Forson said the gains are due to strong and well-coordinated policies. Inflation has dropped to 21.2%, its lowest in eight months. A stronger cedi, now trading around GH¢14 compared to GH¢17 in 2023, has also helped. “These are not short-term gains. They reflect solid planning and reforms to rebuild economic confidence,” Dr. Forson stated.
