S&P downgrades Ghana to CCC+/C, outlook negative
![](https://cdn.classfmonline.com/cfoZ41e/imagelib/thumbs/44949124.jpg)
S&P Global Ratings on Friday pushed Ghana’s debt further into speculative territory, lowering its foreign and local currency sovereign ratings to CCC+/C from B-/B.
S&P said its outlook for the country is negative, “reflecting Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”
The Covid-19 pandemic and the conflict in Russia have magnified Ghana’s fiscal and external imbalances, S&P said.
Demand for foreign currency has been driven higher by several factors, including nonresident outflows from domestic government bond markets, dividend payments to foreign investors and higher costs for refined petroleum products, the agency said.
The nation has also been affected by a lack of access to Eurobond markets, the agency said.
Local authorities have passed a levy on electronic transactions and legislation to tighten exemptions on tax payments including for VAT, among other moves. “While these changes could improve the tax take going forward, the situation remains challenging, and over the first half of 2022, the fiscal deficit has exceeded the government’s ambitious target,” S&P said.
S&P had affirmed Ghana’s ratings in February, as Moody’s downgraded the African nation to Caa1 with a stable outlook.
Source: Marketwatch.com
Trending News
God gave NPP opportunity to transform Ghana but they failed - Ako Gunn
13:03Koku Anyidoho has stepped on the wrong foot by tampering with our brother’s grave – Late Atta Mills’ sister
08:05A/R: Court remands 13 for illegal mining in Jimmirah forest reserve
06:08'I represent the whole country, marshal, take him out' – Speaker Bagbin orders Sefwi-Wiawso MP out of the chamber
05:39A/R: Fire razes down hostel housing KNUST students at Ayiduase
12:19President of National Assembly of Côte d’Ivoire calls on Speaker Bagbin
07:43Tesano: Akufo-Addo hands over 320 housing units to Police Service
06:02Resolve impasse between Oti Bonsu and Abu Ramadan – Concerned NPP members to Party leadership
12:35W/R: Four galamseyers busted, excavators burnt in Subri forest
12:03Addressing judicial backlog: The strategic expansion of Ghana’s Court of Appeal
07:24