Moody’s Upgrades Ghana’s Credit Rating After Debt Reduction Effort
Global credit rating agency Moody’s Ratings has upgraded Ghana’s sovereign credit rating, reflecting growing confidence in the country’s fiscal recovery and debt management efforts.
In a statement released on Friday, Moody’s said it had raised Ghana’s long-term foreign currency rating from Caa2 to Caa1, with the outlook revised to stable. The agency attributed the upgrade to improved macroeconomic stability, better external conditions, and signs of fiscal discipline under the current administration.
“Greater macroeconomic stability and favourable external dynamics are supporting more controlled funding costs and foreign exchange reserve replenishment,” Moody’s noted, adding that while Ghana had struggled with budget overruns in the past, “nascent improvements to the fiscal framework will help anchor fiscal adjustment.”
The upgrade follows fiscal consolidation measures rolled out by President John Mahama’s government since January, aimed at stabilising the economy after a major debt restructuring.
These efforts have paid off: public debt has fallen to ₵629 billion ($51.6 billion), or 44.9% of GDP, as of July, down from ₵764 billion (64.9% of GDP) a year earlier.
In addition, Ghana’s external buffers have strengthened significantly. Backed by a surge in gold prices, the country’s gross international reserves rose 43% to $10.7 billion by the end of August — improving its ability to meet foreign payment obligations.
