Moody’s maintains Ghana’s rating at Caa1 and has revised the outlook from stable to positive, citing an improvement in domestic financing conditions and a gradual stabilization of the macroeconomic framework.
The agency highlights a decrease in domestic financing costs, supported by monetary easing and an improvement in the budgetary situation, as well as a resurgence of activity in the local bond market. The resumption of domestic debt issuance could gradually reduce refinancing risks if it continues.
Ghana recently conducted its first 7-year bond issuance since 2023, following the lifting of restrictions on sovereign issuances in March following the Domestic Debt Exchange Programme (DDEP).
Moody’s also emphasizes an improvement in investor participation in the public securities market and better coordination between fiscal and monetary policy, contributing to stabilizing liquidity conditions and yields.
Despite these advancements, Ghana’s credit profile remains constrained by high debt levels and structural vulnerabilities, including sensitivity to exchange rate fluctuations and commodity prices.
This assessment is part of the program supported by the International Monetary Fund, focused on fiscal consolidation and debt sustainability.
In this context, Ghana’s trajectory is also considered consistent by other rating agencies. Standard & Poor’s confirmed the country’s sovereign rating at B-/B on March 27 with a stable outlook, stating that the post-crisis economic recovery is progressing, while still being exposed to high risks related to debt and commodity dependence.
