Ratings agency Fitch upgraded Ghana’s ratings to “B-” from “restricted default” on Monday, saying the country has normalized relations with a significant majority of its external commercial creditors.
The gold producing nation is recovering from its most severe economic crisis in decades, after facing challenges in its critical cocoa and gold industries which forced the government to restructure its debt.
“We expect Ghana will fully complete its external debt restructuring by end-2025,” Fitch said in its report.
Ghana’s finance minister, Cassiel Ato Forson, announced in March that the new government will make steep spending cuts this year to recover the economy.
Rival agency S&P Ratings had revised Ghana’s foreign currency issuer rating to “CCC+” from “selective default” in May, citing improvement in creditworthiness as it nears completion of its debt restructuring.
President John Dramani Mahama, who took office in January, has vowed to boost the economy and create jobs.
Fitch also assigned “stable” outlook to the country.
Credit: reuters