24th September 2022 9:05:57 AM
1 min readFitch Ratings has said Ghana’s high level of credit risk following the downgrade to CC reflects the increased likelihood that Ghana will pursue a debt restructuring as interest costs surge.
0
This according to Fith is possible given mounting financing stress, with surging interest costs on domestic debt and a prolonged lack of access to eurobond markets.
1
“There is a high likelihood that the IMF support programme currently being negotiated will require some form of debt treatment due to the climbing interest costs and structurally low revenue as a percentage of GDP,” Fitch said when it lowered Ghana’s long-term issuer default rating to CC on Friday.
2
The most recent IMF debt sustainability analysis, conducted in 2021, found Ghana at a high risk of debt distress and vulnerable to shock to market access and high debt servicing costs.
3
Interest costs have risen substantially since then.
4
Fitch Ratings has downgraded Ghana’s Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) to ‘CC’, from ‘CCC’.
5
Fitch typically does not assign Outlooks to issuers with a rating of ‘CCC’ or below.
6
Source: Ghanaweb
7
1 min read
3 mins read
2 mins read
2 mins read
1 min read
2 mins read
2 mins read
2 mins read
2 mins read