S&P Global Ratings has upgraded Ghana’s foreign currency issuer credit rating from ‘SD’ (Selective Default) to ‘CCC+’ following the country’s progress in debt restructuring and an improved macroeconomic outlook.
The upgrade follows the successful conclusion of key phases of Ghana’s domestic debt exchange program and ongoing negotiations with external creditors.
“We affirmed our ‘CCC+’ issue ratings on Ghana’s debt. We also affirmed our ‘CCC+/C’ long- and short-term local currency ratings on Ghana. The outlook on both the foreign and local currency ratings is stable. Ghana’s transferability and convertibility assessment remains ‘CCC+’,” the rating agency stated in its May 9, 2025, assessment, as reported by Citi Business News.
This upgraded credit rating reflects the strengthening of external indicators, particularly a significant increase in gold export earnings and the steady re-accumulation of foreign exchange reserves. These developments signal improved external liquidity and better capacity to meet near-term external obligations, as the restructuring of outstanding commercial debt is also nearing completion.
Following the successful Eurobond exchange in October 2024, the revised ‘CCC+’ rating better reflects Ghana’s improving creditworthiness. This marks a significant milestone after the successful completion of both local currency and Eurobond restructurings, along with the ratified memorandum of understanding with bilateral creditors signed on January 29, 2025.
Downside Caution
However, S&P Global Ratings has cautioned that Ghana’s credit rating could face downward pressure in the next 12 to 18 months if fiscal performance weakens or financing conditions tighten. Such a scenario could exacerbate the already high debt servicing costs and limit the government’s ability to refinance upcoming debt maturities, creating further fiscal and external stability risks.
“While some lenders could still become holdout creditors, the likelihood of related disruption or unwinding of the debt restructuring process is mitigated from the principles of comparability of treatment under the G20 Common Framework, most-favoured creditor clauses in its restructured bonds, and the process’s advanced stage,” the rating agency stated.
Fiscal reforms are currently being implemented to address economic vulnerabilities amid the structural challenges in the country’s fiscal outlook. Although inflation remains elevated at 21.2%, it is on a downward trend, marking its lowest level in eight months, as a stronger cedi has helped mitigate import-related price pressures.
The local currency, which had crossed the GH¢17 mark on the retail market in 2023, is now trading at around GH¢14, showing signs of resilience.
Finance Minister Dr. Cassiel Ato Forson has assured that these gains are not temporary but the result of well-coordinated and prudent economic policies. He attributes the sustained progress to strong fiscal planning and targeted policy actions to restore macroeconomic confidence.
