Fitch slashes Ghana

Fitch Ratings said it downgraded Ghana’s long-term local-currency issuer default rating to RD, restricted default, from CCC. The agency also cut to CC from CCC and subsequently withdrew the issue ratings on five local-currency bonds issued before the domestic debt exchange.

The agency affirmed the issue rating of local-currency bonds issued on the completion date of the domestic debt exchange at CCC.

The RD rating reflects the missed payments on some local-currency-denominated bonds that were not tendered or are held by entities not eligible for participating in the domestic debt exchange, Fitch said.

“Following a meeting with representatives of individual bondholders and pension funds, the government announced having reached an agreement on a pathway towards the settlement of the outstanding debt obligations by 28 April 2023. In Fitch's view, this announcement does not clarify whether missed payments will be settled to all categories of holders of 'old bonds' or only to these two categories,” Fitch said in a statement.

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