S&P Global Ratings has affirmed Ghana’s long-term and short-term foreign currency and local currency credit ratings at B-/B, while revising the country’s credit outlook to stable.
The international ratings agency also maintained Ghana’s B- transfer and convertibility assessment, indicating that the country’s rating remains unchanged across the key categories evaluated by the agency.
According to S&P Global, a B-/B sovereign credit rating falls within the non-investment grade, commonly referred to as the speculative or junk category. This rating reflects a relatively high level of credit risk and vulnerability to default.
The ratings agency explained that issuers within this category face significant financial risks, with adverse economic conditions potentially affecting their ability to meet debt repayment obligations.
The latest assessment is significant for Ghana’s sovereign debt market, international investors and economic outlook, as credit ratings are closely monitored when assessing a country’s ability to access financing and attract investment.
The stable outlook provides an indication of S&P Global’s current assessment of the direction of Ghana’s creditworthiness, although the country remains in the non-investment grade category.
Ghana’s credit rating continues to be closely watched amid ongoing efforts to strengthen economic stability, public debt management, fiscal consolidation and investor confidence.
Source: newsthemegh.com