Moody’s upgrades Ghana’s credit rating to B3, changes outlook to stable

Moody’s Ratings has upgraded the Government of Ghana’s credit rating to B3 from Caa1, with an outlook change to stable from positive. The rating agency also upgraded Ghana’s foreign currency senior unsecured debt ratings and medium-term note programme ratings to B3 and (P)B3 respectively.

According to Moody’s, the upgrade reflects a sustained easing in Ghana’s domestic financing conditions, leading to reduced financing costs and improved debt affordability, though from a weak starting point. The downgrade was not influenced by external factors such as the conflict in the Middle East, showing continued fiscal discipline backed by institutional improvements and favorable export prices that support macroeconomic stability.

Moody’s expects these improvements to continue. At the B3 rating level, credit constraints include high vulnerability to terms-of-trade volatility and exchange rate depreciation, low government revenue generation limiting fiscal policy flexibility, and weak but improving policy effectiveness. However, credit strengths include a moderate debt burden, a history of multilateral creditor financing support, political stability, and a strong legislative and executive institution framework.