Accra, Ghana – Global credit rating agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings, citing significant progress in the country’s debt restructuring efforts.
The agency raised Ghana’s ratings from “Caa3” and “Ca” to “Caa2,” respectively, and also revised the West African nation’s outlook to “positive” from “stable.” This positive outlook reflects the potential for reduced liquidity risks as the government continues its fiscal consolidation efforts, supported by an International Monetary Fund (IMF) program.
Last week, the IMF staff and Ghanaian officials reached an agreement on the third review of the country’s $3 billion loan program. This followed a significant milestone in October when over 90% of Ghana’s bondholders approved a $13 billion debt overhaul. This debt restructuring is expected to reduce Ghana’s debt stock by $4.7 billion and provide much-needed cash flow relief during the IMF program, which is set to expire in 2026.
Ghana’s economy has also shown signs of resilience. The country’s statistics agency reported in September that the economy grew by 6.9% in the second quarter of 2024, the fastest pace in five years. Moody’s expects Ghana’s debt levels to continue decreasing, although the pace may be slower as the government resumes interest and principal payments on all its debts.
