Ghana Receives Credit Rating Boost From Global Agency
11:05 12.10.2024 (Updated: 11:22 14.10.2024)
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Credit ratings provide investors, both individual and institutional, with valuable information about an issuer's financial health and ability to repay their debts, helping them make informed decisions about investments in bonds, debt instruments, and fixed-income securities.
Moody's, a global credit rating agency, upgraded Ghana's outlook to "positive" from "stable," citing significant debt restructuring efforts that eased government financial burdens.
The "positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an IMF programme," the agency stated.
Ghana reached an agreement with the IMF for its third review of a $3 billion loan program. This came after a successful debt restructuring in October, where over 90% of bondholders approved a $13 billion overhaul. The debt restructuring is expected to reduce Ghana's debt stock by $4.7 billion and provide $4.4 billion in cash flow relief through 2026.
Ghana's economy grew by 6.9% in the second quarter of 2024, its fastest growth in five years, according to the country's statistics agency. Moody's predicted a continued decline in Ghana's debt levels, albeit at a slower pace, as the government resumes debt payments.
