Moody’s upgrades Ghana’s credit ratings to B3

Moody’s has upgraded Ghana’s long-term foreign currency and local currency issuer ratings to B3 from Caa1, shifting the outlook from positive to stable. The agency noted that the upgrade reflects easing domestic financing conditions, reduced financing costs, and improved debt affordability following a period of economic restructuring.

Further upward rating pressure is contingent on the Ghanaian government maintaining strict fiscal discipline and demonstrating policy effectiveness. Key requirements for continued improvement include establishing a track record of adherence to budgetary limits, improving tax collection and non-tax revenue, and strengthening foreign exchange reserves to absorb external shocks.

Conversely, Moody’s warned of potential downward pressure if financing conditions deteriorate, if the government's ability to deliver fiscal consolidation weakens, or if a significant external shock erodes foreign-currency buffers and threatens macroeconomic stability.