Moody’s upgrades Ghana’s credit rating, citing debt relief and economic growth

Global credit ratings agency Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings, raising them to “Caa2” from “Caa3” and “Ca,” respectively.

This upgrade is attributed to the country’s extensive debt restructuring, which has significantly reduced the government’s financial strain.

In addition, Moody’s has revised Ghana’s outlook from “stable” to “positive,” reflecting the potential for improved liquidity risks amid ongoing fiscal consolidation efforts supported by an IMF programme.

Ghana’s economy showed promising growth, expanding by 6.9% in the second quarter of 2024—the fastest in five years, according to the country’s statistics agency. Moody’s anticipates that while the country’s debt will continue to decline, the reduction will be gradual as the government resumes payments on its debt obligations.