Moody's ups Ghana

Moody's Investors Service said it upgraded Ghana's local-currency long-term issuer rating to Caa3 from Ca and maintained the stable outlook. Concurrently, Moody's has upgraded the local currency senior unsecured MTN program rating to (P)Caa3 from (P)Ca.

“Following the completion of the government's main local-currency debt restructuring, Moody's assessment of future expected losses on local-currency debt has diminished. Through this exchange, Ghana has achieved a degree of fiscal relief and is therefore unlikely to seek and obtain another similar-scale debt restructuring in the short to medium term from the same creditors given the damage it would cause to its financial sector.

“Moreover, official sector support has started, with the IMF's first disbursement under its program with the country. However, the Caa3 rating captures elevated redefault risk, which remains tangible until Ghana's local currency debt that has not been restructured is settled and until the foreign currency debt is restructured,” Moody’s said in a press release.

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