International credit ratings agency Moody’s Investors Service has upgraded Ghana’s long-term foreign currency credit rating to Caa1 from Caa2, reflecting the country’s improved debt outlook and ongoing macroeconomic recovery under the IMF-supported reform programme. The outlook has also been revised to stable from positive.
The upgrade marks a major milestone in Ghana’s post-crisis recovery journey after years of fiscal strain, high inflation, and currency instability. Moody’s said the decision was driven by stronger fiscal discipline, successful debt restructuring progress, and enhanced foreign reserve buffers all of which have bolstered Ghana’s ability to meet its external debt obligations.
The agency noted that Ghana’s debt metrics are now on a clearer path toward sustainability, supported by prudent fiscal management, primary budget surpluses, and expenditure controls aligned with the Fiscal Responsibility Framework. In an interview Financial Economist, Prof. Joseph Yensu, said Ghana’s upgrade by Moody is a demonstration that economic indicators are working well. He said this will boost investor confidence which will essentially enhance revenue generation.
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Touching on risks that could derail these gains, Prof. Yensu, said fiscal discipline is essential to reposing confidence in the economy.
