Economy Rating Moody’s Downgrades Ghana’s Sovereign Rating To B3

Moody’s has downgraded Ghana’s sovereign rating to B3 with a negative outlook in its latest release.

  • Published:
  play Seth Terkper, Minister of Finance and Economic Planning
24/7 Live - Subscribe to the Pulse Newsletter!

Standard and Poor’s assesses Ghana at an equivalent B-, while Fitch Ratings has it one grade higher, at B.

The ratings agency announced Thursday March 19, 2015 that it downgraded Ghana’s issuer and senior unsecured rating by one notch to B3 from B2, and the outlook on the rating is negative.

According to Moody’s, the key drivers of the ratings action are:

1) Deteriorating debt dynamics as reflected by an increasing debt burden due to large fiscal imbalances and a sharp weakening of the country’s national currency, combined with reduced debt affordability stemming from a high cost of funding in the domestic market;

2) Increased government liquidity risks, as the government faces large gross borrowing requirements amid more difficult domestic and external funding conditions.

Moody’s noted that the negative outlook reflects further downside risk to the country’s debt dynamics and liquidity pressure in the short-term if the country’s policies fail to successfully contain its fiscal deficit, stabilize its currency and address current impediments to higher economic growth.

Concurrently, Moody’s has changed the foreign-currency bond ceiling to Ba2 from Ba3 and the foreign currency deposit ceiling to Caa1 from B3, it says. It has also changed the local currency bond and deposit country ceilings to Ba3 from Ba2.

Download our mobile app today.

Android - Google Play Store

iPhone - Apple App Store

Recommended Articles

Recommended Videos




Top Articles

1 Watch Water leaks from hole in wall at new Kwame Nkrumah Interchangebullet
2 Pulse Live Daily EC extends special voting exercise by a daybullet
3 His Excellency Top 10 John Mahama quotes that will shock youbullet
4 Judgement debt Supreme Court puts on hold Amidu's oral examination...bullet
5 Kwabena Boadu One week of demise commemorated [Photos]bullet
6 Young Leaders Three Ghanaians recognised by UK Queen for their...bullet
7 Farmers Day Friday is not a public holiday - Interior Ministrybullet
8 Presidential Debate Gov't has no jobs for you - Mahama to...bullet
9 Tsatsu Tsikata God delivered justice – Wife of Tsatsubullet
10 2016 Vote for Pulse Person of the Yearbullet

Top Videos

1 Kwame Nkrumah Interchange Water leaks from hole in wall at new Kwame...bullet
2 Night Life Some taxi drivers and their night driving experiencesbullet
3 Woyome Judgement Debt Kweku Baako dances over Amidu's winbullet
4 School feeding programme Food for All Ghana helps feed schoolsbullet
5 Elections 2016 Nana Addo holds conference in Kumasi ahead of Dec...bullet
6 Obinim Pastor charged with assault; sent to CID Headquartersbullet
7 Video IEA Presidential Townhall 2016bullet
8 Meet Aisha the female mate who aspires to be a driverbullet
9 Video Taxi driver terrified after an encounter with a ghostbullet
10 Obinim What happen'd when we fact checked Obinim's...bullet

News